When employment ends or a reduction in hours causes a loss of health insurance coverage, employees are often entitled to continue their health benefits through COBRA—the Consolidated Omnibus Budget Reconciliation Act. However, employers frequently fail to provide timely and adequate COBRA notices, leaving employees without coverage and exposing them to unexpected medical costs.
Under COBRA, most employers with 20 or more employees must offer continuation coverage under their group health plan for up to 18 or 36 months, depending on the qualifying event. These events include voluntary or involuntary job loss (except for gross misconduct), reduction in work hours, divorce or legal separation, death of the covered employee, and a child aging out of dependent coverage. Generally, federal law requires employers to provide COBRA election notices to former employees and other qualified beneficiaries within 44 days of the qualifying event.
Unfortunately, many employers fail to comply. They may send notices late, omit critical information, or fail to send them at all. Others use vague or misleading language that confuses employees about their rights or how to elect coverage. When COBRA notices are inadequate or never sent, affected employees may unknowingly go without insurance, accrue significant medical debt, or miss their opportunity to maintain essential coverage.
The Department of Labor has issued detailed regulations outlining the required content of COBRA notices. These include the name of the plan, contact information for the plan administrator, details about the qualifying event, instructions for electing coverage, and an explanation of the consequences of failing to act. Employers who violate these rules may be liable for statutory penalties of up to $110 per day for each affected individual, as well as for actual damages and attorneys’ fees.
Caffarelli & Associates, Ltd. is actively investigating COBRA notice violations and representing individuals who have been harmed by inadequate or missing notices. We work with clients to assess whether the notice they received complies with legal requirements and whether they may be entitled to damages. We also pursue class actions on behalf of groups of employees who received similarly deficient COBRA notices.
If you lost your health insurance due to a job change or reduction in hours and were not properly informed of your COBRA rights, contact Caffarelli & Associates for a confidential consultation. You may be entitled to compensation and to hold your former employer accountable. Health coverage is too important to be overlooked—and the law is on your side when employers fail to follow the rules.
