In a recent case in the Eighth Circuit, a court did not award statutory damages when an employer failed to properly provide a COBRA notice. In Cole v. Trinity Health Corporation, the employer, Trinity Health, did not timely notify Cole of her right to continue health coverage under COBRA. Cole filed a lawsuit, asking for statutory damages.
Statutory damages under COBRA are awarded in the Court’s discretion. While Trinity Health clearly did not follow the COBRA rules, the Court did not award damages because the amount of Ms. Cole’s unreimbursed medical expenses was less than the amount she would have had to pay under COBRA. The Court also found that the employer acted in good faith, and in this case, actually continued medical coverage for Ms. Cole after her termination.
Employers should make sure to follow the COBRA rules. For assistance with COBRA administration, contact Cobra Control Services, LLC at info@cobracontrol.com.