Q.- We forgot to send a COBRA notice to an employee who terminated last year. What do we do?
A.- You should send the notice as soon as possible. Penalties may be assessed for missing a required COBRA communication. The penalty for failing to provide a COBRA election notice may be up to $110 per day. Some courts have required an employer to pay the cost of medical expenses, also. If your organization is audited by the IRS and you have not fixed the COBRA violation, your organization may be subject to additional fines. You should also consult with your health plan (insurance company) if retroactive coverage will need to be offered. You will have to consider how COBRA should be offered at the late date- will the company cover the person during the missed COBRA election period? Will the 18 months of COBRA start upon distribution of the late notice? Will past payment be requested? Consult with your legal counsel to work through the issues.