Posts Tagged ‘medical expenses’

Forgetting to provide employees with notice of their right to elect COBRA health care continuation coverage under an Employee Retirement Income Security Act governed group health insurance plan, within the 44 day statutory notice period for doing so, may be a costly mistake for employers.  In Fama v. Design Assistance Corp, the Third Circuit held that a former employee, who resigned from a company, was entitled to $2,930 in statutory damages after her former employer was 293 days late in providing the former employee with notice of her right to continued health care coverage.   In so holding, the court said that COBRA penalties of $10 a day are appropriate where an employer does not exhibit bad faith and an employee incurred medical expenses during the lapse in coverage.

  This article is authored by attorney Shannon O. Young and is intended for educational purposes and to give you general information and a general understanding of the law only, not to provide specific legal advice. Any particular questions should be directed to your legal counsel or, if you do not have one, please feel free to contact us.

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