Take care with COBRA compliance — or pay big damages
In recent months, at least four companies have gotten into trouble for failing to provide Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) notices to health plan participants. Suits of this nature can lead to big damages. Since 2015, courts have approved settlements ranging from $290,000 to $1 million. Damages include statutory penalties of $110 per day, awards to qualified beneficiaries as relief for damages that occur due to the failure to provide an adequate COBRA