Document and Implement COBRA Procedures

August 31, 2017

Plan sponsors are probably sick of hearing plan professionals harp on the importance of having and following COBRA procedures, but a recent court case again emphasized the point. An employee sued his health plan stating that he did not receive a COBRA notice. It could have become a he said versus what the plan said situation, instead, the plan received summary judgment. The court found that since the plan had well- documented COBRA procedures, the employer did send the COBRA election notice.

 

The procedures in place included:

  • Proper coding of COBRA eligibility

  • Documented information transfers between the plan and the COBRA administrator

  • Records of generating and printing notices

Plans should continue to comply with and frequently improve their COBRA procedures.

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