Employer Penalized $1.8 Million

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Glitches in an automated data feed between an employer and its COBRA administrators affected more than 700 employees. Review this infographic to see how to avoid mistakes like this one!

Business

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
copyright 2014

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