Most companies use a third-party administrator to handle their COBRA notification duties. Here’s what can happen when companies forget to keep an eye on the overall process.
An employee for Esurance had changed his mailing address from a P.O. box to his apartment’s street address. Later, he began taking intermittent FLMA leave for post-traumatic stress disorder (PTSD) until his leave was exhausted.
The employee ended up being terminated, and the TPA that handled the company’s COBRA mailings sent him a COBRA notice. However, because the TPA sent the election notice to the employee’s old P.O. address, he didn’t receive it.
Eventually, the employee received a COBRA notice – around a year and a half later. But he sued the company for COBRA notice violations, because he didn’t receive his election notice until well after the 44-day qualifying event timeframe plan sponsors are required to send it within
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