• David Martin

Watch Out! Keep Your Clients From Being Bitten by COBRA



Though not originally a part of ERISA, a significant later amendment was the COBRA notice requirement. While no employer is going to mistake this COBRA for a snake, many have been bitten by it nonetheless, with penalties of up to $110 per day. That can paralyze a small business if one or more years are involved. Not every employer is subject to the COBRA notice requirements; however, those with 20 or more full time employees most likely are. Generally circumventing that by employing several part-time employees will not enable an escape from the coils of COBRA.

By law, upon termination of an employee (or another qualifying event) which triggers a loss of health insurance coverage, an employer is required to give a written notice of COBRA rights. This is the right to continue to receive health insurance benefits for at least 18 months at the expense of the covered individual. Usually the cost is 102% of the actual cost of the health insurance. This continued coverage can be critically important to many. Employers sometimes mistakenly believe that merely telling the former employee about COBRA is sufficient. Some have argued that mentioning COBRA in a release or some other document is adequate notice. See Knight v. Gen. Telecom, Inc. (N.D. Ala. Sept. 27, 2017). However, the regulations (29 CFR § 2590.606–4(b)(4)) set out in detail all of the information that must be contained in the COBRA notice, including an outline of the procedures to follow when making the election. Failure to follow these regulations is at the employer’s peril. To protect your employer clients, develop a checklist or brief summary of how to avoid the bite of COBRA and offer it to your clients as a resource.

#COBRALawyers #COBRA #ERISAdisabilitylawyer #ERISAlawyer

Contact us today for a free initial consultation.

The Martin Law Group is dedicated to being your go-to ERISA attorneys and long term disability lawyers. Whether you are pursuing a long-term disability claim, life insurance benefits, or your pension or retirement benefits, we will meet with you face-to-face to discuss your claim at a location convenient for you. 

 

In an effort to make disability claims as easy as possible, we offer a free initial consultation. We often work with clients in Huntsville, Mobile, Birmingham, Montgomery, Dothan, Tuscaloosa, and Florence, in Alabama, as well as with clients in Columbus, Meridian, Jackson, Hattiesburg, Tupelo, and Gulfport, Mississippi, and surrounding areas.

Contact us today for a free consultation.

800-284-9309

info@erisacase.com

Tuscaloosa Office

2117 Jack Warner Pkwy
Suite #1
Tuscaloosa, Alabama 35401
Toll-Free: 800-284-9309
Local: 205-343-1771

Birmingham Office

The WSK Building
2323 2nd Avenue North
Birmingham, Alabama 35203
Toll-Free: 800-284-9309
Local: 205-343-1771
  • Long term disability lawyer
  • ERISA disability lawyer
  • Retirement benefits lawyer

© 2020 by The Martin Law Group, LLC

Sitemap | Legal Disclaimers | Privacy Policy

Website proudly created by Cartography Consulting.

DISCLAIMER: These recoveries and testimonials are not an indication of future results. Every case is different, and regardless of what friends, family, or other individuals may say about what a case is worth, each case must be evaluated on its own facts and circumstances as they apply to the law. The valuation of a case depends on the facts, the injuries, the jurisdiction, the venue, the witnesses, the parties, and the testimony, among other factors. Furthermore, no representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.