Little Mistakes That Lead to Huge Liability
Failure to comply with the various COBRA laws can expose you to ERISA penalties, IRS excise taxes, civil lawsuits and compensation for healthcare expenses.
Not to mention the significant additional costs to your company in lost time, money and productivity in defense of a mistake.
…and if you believe outsourcing COBRA administration to someone else protects you — you’re wrong.
Don’t think for a minute that COBRA is going away due to healthcare reform. Remember, the Affordable Care Act (ACA) does not cover dental, vision, Medical Flexible Spending Accounts, Health Reimbursement Accounts or Employee Assistance Plans, all which are subject to the COBRA laws.
The Department of Labor (DOL) is responsible for enforcing COBRA compliance. With the increased enforcement efforts through DOL audits, it’s being widely reported over 90% of all employers are non-compliant with COBRA laws.
Non-compliance with COBRA laws can lead to penalties and excise taxes equal to $100 per day per violation. The penalties can reach as high as $500,000. In addition to these penalties there is the potential for lawsuits where the employer can be on the hook for hundreds of thousands of dollars in legal fees and related benefit claims for healthcare expenses.
Even more worrisome is that individuals with fiduciary duty can be held personally responsible for paying for these mistakes.
Understanding your personal responsibility for COBRA mistakes can save you thousands of dollars:
These FREE videos, presented by ComplianceBug founder Peter Lewenson, give you a detailed roadmap to ensure you comply with the various COBRA laws. They cover:
Don’t Handle COBRA Yourself? Then Listen Up…
Fiduciary Responsibility: Who You Are vs. What You Do
ComplianceBug is the leading provider of online compliance solutions for employers and professional advisors that makes group benefit and HR compliance easy, affordable and reliable.