According to data from the Small Business and Entrepreneurship Council, 89.4 percent of businesses have fewer than 20 employees and 99 percent have fewer than 500 workers. That means that only 10.6 percent of businesses are subject to federal COBRA requirements.
This number still leaves significant opportunities for COBRA administrators, but competition is fierce. To succeed in this crowded market, you must stand out. Not only do COBRA administrators have to compete against other benefits administrators, but they also have to compete against the in-house services some companies use.
As a COBRA administrator, you need to persuade companies to use your COBRA administration services. To do this, you need to prove that you offer something the others don’t. Whether you’re trying to attract new clients or convince current clients to stay with your services, you need to maintain a competitive edge.
But how can you differentiate your TPA services in a tightly regulated industry?
First, you can offer customization. Although COBRA notices need to be uniform in terms of when they’re sent out and the essential information they contain, this still leaves a great deal that can be modified for each client. In addition to adding customization to reflect the client’s brand, with the right software, administrators can customize everything from termination policies to billing processes and payment methods.
Complying with state continuation regulations is another way to add value and protect your clients. Many clients are simply not aware of their state obligations.
Customization and state compliance are two huge issues, but they are only two ways to make your services stand out. Learn them all. Download 7 Ways to Keep Your Competitive Edge in COBRA Administration today!