Q: What happens if we forget to send a COBRA qualifying event letter and the employee doesn’t receive their COBRA election notice on time?
A: Under federal COBRA rules, employers must send a COBRA election notice within 44 days after a qualifying event (such as termination or reduction in hours). If the notice is delayed or not sent, the employer could be subject to penalties from the Department of Labor up to $110 per day per affected individual. It is possible a court could also hold the employer responsible for the cost of claims incurred during the lapse.
Benefit Allocation Systems (BAS) provides best-in-class, online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.
MyEnroll360 can Integrate with any insurance carrier for enrollment eligibility management (e.g., Blue Cross, Blue Shield, Aetna, United Health Care, Kaiser, CIGNA and many others), and integrate with any payroll system for enrollment deduction management (e.g., Workday, ADP, Paylocity, PayCor, UKG, and many others).
This article is for informational purposes only and is not intended as legal, tax, or benefits advice. Readers should not rely on this information for taking (or not taking) any action relating to employment, compliance, or benefits. Always consult with a qualified professional before making decisions based on this content.
