More COBRA Settlements Show Importance of Trusted Compliance Partner

We know organizations are always looking for ways to save money, searching for any way possible to lower their bottom line. However, that can come back to haunt them if they aren’t careful. As an organization that prides itself on compliance expertise, we know just how risky it can be to take shortcuts with anything compliance related.

So why choose a trusted compliance partner?

Let’s take a look at the class action case against Mom’s Organic Market earlier this year. According to Bloomberg Law, Mom’s Organic Market settled for over $400,000 after they did not send COBRA notices to plan participants when required. Regardless of why the notices weren’t sent, a trusted third-party administrator (TPA) like BASIC would have ensured covered participants receive the required notices on time and accurately. It’s one of the major risks of handling COBRA in-house and should not be taken lightly.

Here we’ll look at another example that reinforces the importance of having a trusted compliance partner. According to Thomson Reuters, an employee filed a lawsuit alleging that the employer did not notify her of her COBRA rights, among other claims. The employer argued that the employee’s severance agreement stated all of this information. However, even though the severance agreement did provide notice of COBRA rights, the court ruled that it did not satisfy what was required of the employer. This allowed the case to proceed, leaving the employer open to risk that could have been avoided by partnering with a TPA like BASIC.

BASIC COBRA Administration

The great news for employers is that BASIC has been handling COBRA for almost three decades now. COBRA is one of the most commonly outsourced HR functions and BASIC has developed best practices to help employers stay stress free and mitigate their risk. Plus, BASIC COBRA Administration is on the same platform as our dozens of in-demand benefit accounts, making it seamless for our COBRA clients to add additional benefits in days, not weeks! We’re here for whatever your business needs are, no matter how big or small your organization is. If you’d like to see how BASIC can help protect your organization, request a no-cost proposal today!