Tag: COBRA

Health Care Reform Mandates: Impending Dates

The next three months are crunch time. Employers have to get moving on several deadlines, most of them required under health care reform. Some reform rules should have taken effect in 2014, but were subject to the year-long delay instituted by the Obama administration. Health Plan Identifiers Nov. 5, 2014 is the deadline for large group […]

Court Approves $1M Settlement in COBRA Class Action Lawsuit

A federal district court gave preliminary approval to a $1 million settlement agreement that would resolve a class action lawsuit alleging that an employer/plan administrator, in farming out its employees to clients, violated COBRA’s initial and election notice rules, as well as its  premium subsidy rules. The settlement would consist of a $375,000 payout to […]

Verbal COBRA Notice Is Sufficient, Says Court in Ruling for Employer

In a decision that overlooked key COBRA guidance, a federal district court ruled that an employer/plan administrator fulfilled its notice obligation by verbally providing a notice of COBRA rights and accepting premium payments — which apparently the qualified beneficiary had to pay a few days after her employment termination. In dismissing a COBRA notice claim, […]

Employer Faces More Fees as 11th Circuit Affirms $126K COBRA Penalty Award

A federal appeals court not only affirmed a ruling that an employer/plan administrator must pay more than $126,000 in penalties and legal costs for intentionally violating COBRA notice requirements, it also held that about $2,460 in expenses excluded from the legal award should be revisited by the lower court. The case is Evans v. Books-A-Million, […]

Employer Faces State-law Claims After False Promise Causes Beneficiary to Skip COBRA Coverage

A former employee left with more than $13,000 in unpaid medical bills after his employer retroactively terminated his employment and health benefits can sue for state-law claims, a federal district court ruled. The individual alleged that while he was hospitalized, the employer said his expenses would be covered. Thus, he did not elect COBRA coverage. […]

Health Care Reform: COBRA notices changed; special enrollment opportunity created

Due to some ambiguity in model government language explaining the interplay of the Affordable Care Act with COBRA coverage, the Obama administration has both proposed an update to model COBRA notices and provided a new special enrollment opportunity for COBRA qualified beneficiaries (QBs) to enroll in marketplace coverage. Last year, the U.S. Department of Labor […]

Supervisor’s Job? Keep HR’s Options Open

In yesterday’s Advisor, attorney Mark Schickman discussed basic guidelines for supervisor training. Today, more tips for supervisors, plus an introduction to BLR’s audit-by-checklist program. Your supervisors aren’t technical experts on HR matters, and they‘re not going to be, but you can train them to act in a way that preserves HR’s options, says Schickman, a […]

Free Coverage for 11 Months Eliminates Need for COBRA Notice Penalties, Court Rules

Due to an administrative error, an employer clearly did not provide a qualified beneficiary with a COBRA election notice. However, the qualified beneficiary also benefited from that mistake by receiving 11 months of free health coverage. For that reason, a federal district court in Iowa rejected claims that the employer should be subject to COBRA […]

TPA Faces ERISA Benefits Denial Claim for Improperly Raising COBRA Premium

A third-party administrator that poorly communicated a COBRA premium rate increase ­— which in any case was likely prohibited under COBRA’s rules — is being sued for ERISA benefits denial and state-law promissory estoppel claims. The TPA instituted the premium change but did not provide clear written notice of it as required under plan terms. […]

HRIS Checklist: How Do You Measure Up?

Yesterday’s Advisor featured advantages and disadvantages of having an HRIS (Human Resources Information System). Today, a handy checklist for seeing where your systems stand with regard to personnel records, plus an introduction to BLR’s unique 10-minutes-at-a-time training system. HRIS Personnel Records Checklist The more questions to which you answer “yes,” the better your computer system […]