Important updates to remittance and distribution of COBRA fees

UnitedHealthcare has made changes to the remittance and distribution of COBRA administration fees and premiums collected for customers. The following changes have been made  to align with industry standards and offset the rising costs of COBRA administration:

  • The 2% COBRA administrative fee currently remitted back to the customer is now going to be retained by UnitedHealthcare
  • All premiums collected by UnitedHealthcare on behalf of the member will be disbursed back to the customer to remit to carriers directly

These changes impact all new and renewing customers that utilize COBRA Administration services from UnitedHealthcare Benefit Services and/or have opted to have the 2% fee remitted to them. All impacted customers will be notified of these changes through their annual renewal process.

For more information, please contact your broker or UnitedHealthcare representative.

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