COBRA Health plan Advice for Individuals and Small Businesses |
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Re: Who do you report employer violation to?
In Reply to: Who do you report employer violation to? posted by Linda on October 01, 2007 at 14:49:39:
Linda
Since there could be a tax penalty maybe the IRS.
I found this:
"Employers that violate COBRA are subject to civil sanctions and tax penalties. Under COBRA's civil sanction procedures, either the Department of Labor or plan beneficiary can sue a plan that fails to provide required COBRA notices to employees. Where a court decides beneficiaries were wrongfully denied continuation coverage, they are entitled to equitable relief. Plan administrators may be personally liable for a special civil penalty of up to $100 a day for failure to provide the required COBRA notice.
COBRA's tax sanctions include a non-deductible excise tax of $100 a day for each beneficiary affected during the noncompliance period. The tax penalty is capped at $200 per day for each affected family. In applying the $100 a day penalty, the period of noncompliance is measured from the date of the failure to the date when the failure is corrected or the date six months after the last day of the otherwise applicable COBRA coverage period, whichever is earlier. An employer's maximum liability under the tax penalty is limited to the lesser of $500,000 or 10 percent of the preceding year's total costs of providing group health coverage. "
Agent
: I was terminated 1 month ago. I am aware that I have to wait another 2 weeks before my former employer is in violation of Cobra notification. At that point, who do I report them to? They have a reputation of not following rules. And I hope to make an example of this. If they just get fined, I will be happy.