State of Kansas outsources its COBRA administration program

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Like many innovative enterprises, the state of Kansas constantly searches for new ways to operate cost-effectively and use tax dollars wisely. One way it does so is by outsourcing its COBRA administration program. And effective October 2009, Kansas City-based COBRAGuard, Inc. will serve as the state's new COBRA administration partner.

Of course, with every outsourcing situation, data integration and customized reporting capabilities are paramount. And those were two key requirements that led the state of Kansas to COBRAGuard. Public Information Officer Peter Hancock says, "Because we are a state agency, we use a competitive RFP process to identify the most capable solution for the lowest price. Through this process, COBRAGuard emerged as the best solution. We were particularly impressed by the company's flexibility, data integration capabilities and mail tracking ability."

"Two of our primary strengths are flexibility and adaptability," explains COBRAGuard's VP of Sales, Mike Gallagher. "COBRAGuard isn't an ocean liner -- it's a speedboat. If our customers need us to react and change, we quickly give them what they need." Gallagher says that the state's COBRA administration transition is underway and that his company is diligently working to accommodate the state's data integration and reporting requirements. "I have no doubt that we'll exceed their expectations," he says. "We have a strong track record of success with delivering customized reporting for a wide variety of accounts, including Payless Shoes, Saint Luke's Health System and Medical Benefits Administrators of MD, just to name a few."

The state of Kansas employs 45,000 people with 300 to 500 COBRA continuants at any given time. According to recent studies, COBRA administration is one of the most commonly outsourced HR functions. "Companies and municipalities now realize that there's no reason to continuously invest in the endless training, legal review and documentation needed to properly administer COBRA," says COBRAGuard President Robert Meyers. "It's considerably more cost-effective to outsource this service to experts who manage it day in and day out."

"The transition is going well," says Hancock. "We're looking forward to the efficiencies of being fully implemented." Meyers agrees saying, "We are delighted to have been chosen as the COBRA administrators for our state. As a Kansas corporation, we are proud to be able to serve our community."

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