Failure to comply with COBRA provisions may result in COBRA lawsuits and/or IRS penalties.

The COBRA penalties for violations range from $100/day for each day of non-compliance, to $2500 for each individual affected, to $500,000 or 10% of the health plan costs (whichever is less) for major violations.

For most companies, avoiding COBRA penalties and fines can be achieved by making certain you:

• Maintain a written COBRA procedures manual outlining the steps the employer takes to provide notices, address inquiries, etc.
• Maintain copies of all COBRA notices.
• Appoint an individual qualified to handle COBRA duties.
• Copies of all notices sent, stamped and addressed envelopes, etc.
• Keep notes of conversations with COBRA beneficiaries.
• Keep COBRA related correspondence from beneficiaries.

Compared with the potential cost of paying fines, lawsuits, or facing an IRS COBRA audit, compliance is inexpensive and relatively simple.

For more information about CobraAid's COBRA Compliance Program:

Employers Click Here

Brokers Click Here.

For a Free COBRA Employers Guide, CLICK HERE.

See how easy it is:

Watch the COBRA Software Demo

*COBRA is a Federal law that requires certain employers to offer ex-employees and their dependents the opportunity to continue their coverage under the company’s group health plan. To request a free copy of COBRA’s latest regulations (2004) in PDF version, send your request to service@cobraaid.com