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COBRA Class Action Investigation Alleges Continued Coverage Issues

What is the COBRA Class Action Investigation Looking At?

Class action lawsuits have been filed by former employees against their employers for not receiving the proper notice of their health care benefits under COBRA coverage after termination. In short, the COBRA class action lawsuit accuses the employers of providing confusing or unclear COBRA notices, not withholding legally required information, or failing to give information at all. COBRA is the federal Consolidated Omnibus Budget Reconciliation Act which lets employees and their beneficiaries enjoy healthcare benefits for a limited period after losing medical coverage because of job loss and other reasons.

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COBRA Benefits Notice is An Employees’ Right

COBRA insurance allows for continued health coverage for employees and their family members preventing a lapse in coverage situations should such come to an end. It applies to all private-sector health plans and state and local government-sponsored health plans, except those sponsored by federal agencies and religious organizations.

COBRA insurance allows for a temporary extension of medical coverage to employees who have been terminated or who recently experienced a reduction in hours or a pay cut. Employees who qualify should be notified and made aware that COBRA coverage will be offered in the event they lose their coverage in what is called the COBRA general notice within 90 days of beginning the coverage. The coverage lasts for a limited period of 18 or 36 months from the date of the qualifying event which is determined by the type of event that led to the need for COBRA coverage.

This is required of employers with 20 or more employees who sponsor group health plans over the prior 12-month period. At the event that the employee loses their coverage, plan administrators are required to send a COBRA election notice within 14 days if using an outside administrator, and 44 days if not. The notice must inform them of their rights under the plan in plain and easy to understand language.

Details of the COBRA notice include:

  • Name of the plan that will continue
  • Name, address, phone number of the plan administrators
  • Identification of qualifying event
  • Identification of qualified beneficiaries
  • The date in which the current plan will be terminated if COBRA coverage is not enacted
  • Explanation that each beneficiary has the right to decide to continue coverage
  • The procedure for continuing coverage
  • An explanation of what will happen if coverage is not continued
  • An explanation of what the coverage will include
  • When coverage will begin

Editor’s note on the COBRA Class Action Investigation:

This article is crafted to inform you about the COBRA Class Action Investigation. If you or a family member had your rights for the COBRA insurance infringed, contact us today for help and evaluation.

If you are considered eligible to be among the class of consumers described in the article above, you may eventually be able to participate in receiving any compensation the court may award.

Contact Us

We’d be happy to help you take a step in the right direction, fight this issue, and better enable you to join in on any potential consumer class action. If interested, please send an email to Outreach@ConsiderTheConsumer.com, find us on Twitter or Facebook, or even connect with us directly on our website! We look forward to hearing from you all.

Similarly, please check out our current list of Class Actions and Class Action Investigations, here.

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