A District Court in Alabama found a COBRA qualifying event letter package did not satisfy the COBRA rules because it failed to provide sufficient information.
In Griffin v. Neptune Technology Group, the Plaintiff, Joshua Griffin, sued his former employer under the Civil Rights Act for illegal retaliation and also claimed under COBRA that Neptune illegally failed to provide appropriate notice for him to continue his health insurance after termination.
COBRA allows former employees to file private cause of action against an employer who does not provide a COBRA notice within the appropriate time frame. In such an action, the plan administrator has the burden to prove that adequate COBRA notice was given to the employee.
Griffin said he never received a COBRA notice. The court held that Neptune did not have to prove that Griffin received the notice, just that they made a good faith attempt to send the notice. Neptune’s standard process of sending notices by first class mail was sufficient to show good faith attempt for notification. The employer has standard processes when employees terminated, and was able to produce a copy of a metered envelope sent to the employee.
Griffin also argued that even if he did receive the notice, the notice was insufficient. The court found that the employer’s notice did not include all of the items required under the COBRA statute. The notice also referenced a “next page” that was not included in the standard notice package.
Since the letter failed to explain how a person could elect COBRA and did not include the statutory requirements under COBRA, the court ruled that the employer did not provide adequate COBRA notice.
BAS’ Cobra Control Services can help employers navigate the COBRA administration process. For more information about CCS, contact info@CobraControl.com.