Importance of COBRA Processes

Posted by BAS - 29 June, 2017

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A recent 11th Circuit court case highlights the importance of good COBRA practices. In DeBene v. BayCare Health System, Inc., Mr. DeBene sued his former employer for, among other things, failing to provide a qualifying event notice under COBRA. The district court granted summary judgment to BayCare Health System finding that the Health System’s third party COBRA vendor had processes in place that were able to document proof of notice mailing. The appeals court upheld the summary judgment ruling in favor of the employer.

The Health System engaged a third party COBRA vendor for its COBRA notice and billing support. The Health System documented that Mr. DeBene was identified as COBRA eligible on his termination date, the information was transferred to the COBRA vendor, and a COBRA election notice was generated and printed for Mr. DeBene by the COBRA vendor. The COBRA vendor was also able to show that other recipients of notices mailed on the same day as Mr. DeBene’s notice did elect COBRA coverage and no other former employee with a letter sent on the date reported not receiving notice.

Since the COBRA vendor was able to describe its processes that were followed for COBRA notices and elections, the Court found that Mr. DeBene did not have sufficient evidence to bring a claim against the Health System for failing to provide a COBRA notice.

This case highlights the importance of engaging a COBRA vendor with strong processes and procedures for notice generation and billing collection. Cobra Control Services, LLC can assist employers with their COBRA and continuation of coverage obligations. For more information, contact your account manager or service@CobraControl.com.


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