We all know the cost of postage continues to rise, but $84,385.17 for one stamp? Unfortunately, $84,385.17 is what one employer was fined because they neglected to mail one COBRA dental election notice to a former employee.
Considering an $84,385.17 potential fine for one missed mailing, are you sure you mailed all your COBRA notices? Perhaps it is worth double checking. And the most important question of all, do you have records to prove your notices were mailed?
With COBRA, you must be able to prove what you did and when. If you cannot provide these records, the courts can fine you up to $200 per day per delayed notice and add-on related attorney’s fees. Aside from the fines, the case I’m referring to, took over five years to finalize. How would five years of litigation affect your bottom line?
If you are administering COBRA in-house, be sure to document, document and when in doubt, document some more. The key is to establish and follow outlined procedures, document everything in writing, attend regular certified COBRA training, and track the 32+ unique deadlines for each COBRA record.
As a COBRA third party administrator, prospective clients frequently tell us, “We’re just not sure we’re doing this right…”. In many cases, they have a valid concern. That being the case, you may be unnecessarily increasing their company’s COBRA liability.
For only a few dollars a month, you can be sure to avoid an $84,385.17 fine for a missed COBRA mailing. Call my CobraPlan today and learn how we can assist your company. The team of professionals at myCobraPlan is here to help you navigate the COBRA legal requirements to ensure your organization won’t face unnecessary fines and penalties.