In the class action case of Pierce v. Visteon, the employer used numerous COBRA and benefits administrators. Most of the qualifying events related to extensive layoffs that occurred during

December 2004.

The court saw a complete lack of COBRA

oversight by the employer, which was

the plan administrator.

HERE ARE SOME KEY LEARNINGS FROM THIS CASE:

Automated processes are good but they still must be subject to regular verification

Even if your outsourced COBRA administrator is doing a good job, designate at least one employee for COBRA inquiries

If you outsource COBRA administration, ensure that your administrator is providing regular activity reports and that

you’re reviewing them

Employer Penalized $1.8 Million

A district court recently assessed the damages: more than $1.8M plus attorney fees.

two million dollars

Glitches in an automated data feed between an employer and its COBRA administrators affected more than 700 employees. one thousand employees

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