COBRA – This is another law that could easily be a full conversation in and of itself. COBRA regulations have been put in place to help individuals and/or dependents continue health coverage if they have lost coverage. The biggest challenges that face employers is getting the documentation to the employees in a timely manner. While the ACA does not impact the law the compliance to the law will be under greater scrutiny due to the increases in DOL and EBSA audits.
When a business owner is noncompliant with COBRA regulations they may be assessed by the IRS (up to $200) for each day on which a plan fails to comply with COBRA. Statutory penalties of $110 per day may be recovered by qualified beneficiaries. Additionally, the qualified beneficiary may sue the employer to implement COBRA coverage rights, for damages caused by the deterioration of a beneficiaries’ medical condition as a result of them not getting adequate rights notification and attorney’s fees.