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Polk County hires WEX to administer COBRA and Minnesota continuation coverage for retirees
Summary
The board approved a contract with WEX to handle COBRA and Minnesota continuation notices, billing and payments; staff estimated about 25 retirees currently on continuation coverage and a county administrative cost of roughly $200 per month.
Human-resources staff (S8) asked the board to approve a third-party administrative contract with WEX to manage COBRA and Minnesota continuation coverage for retirees and separated employees. Staff said the county had been self-administering COBRA but that a third-party vendor would reduce compliance risk and administrative burden, provide a retiree portal and mobile payment options, and assist retirees in finding marketplace alternatives where appropriate.
S8 said about 25 retirees currently use continuation coverage and estimated the county's administrative fee at roughly $200 per month (75 cents per covered employee for general notices and $4.25 per month per retiree for Minnesota continuation ongoing management). S8 confirmed retirees would not pay a direct WEX administrative fee; the county would absorb the administrative charge as part of benefits administration.
Board members asked practical questions about the retiree experience and data flows; staff said WEX would produce reports for accounting and reconcile payments and that the county would terminate in-house COBRA billing once the feed to WEX was operational. The board approved the WEX contract by voice vote.
