Tag Archives: Comprehensive Omnibus Budget Reconciliation Act

Employer Proved COBRA Notice WAS Mailed to Employee | Payroll Link

072016_Thinkstock_501120052_lores_KKIn a recent case, a federal district court ruled that an employer didn’t violate the Comprehensive Omnibus Budget Reconciliation Act (COBRA) — even though an employee who resigned from the company claimed that she never received notices that she was entitled to continue her health insurance benefits.

Under the law:

A plan administrator is required to give each participant a notice of certain health insurance coverage rights 44 days after a “qualifying event,” such as the termination of the participant’s employment.

If a plan administrator fails to provide the required COBRA notice, it may be “personally liable to such participant or beneficiary in the amount of up to $110 per day from the day of such failure.”

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