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Over the years we have received numerous requests from our customers to develop new software products. COBRA Solutions would appreciate your input on the below survey to obtain feedback on new product/service idea’s that would benefit you in your workplace. Please click on your top (2) choices from this list, or enter any other recommendations not included.

• Family Medical Leave Act Tracking Software (FMLA);
• Fair Labor Standards Act Tracking Software (FLSA);
• Health Reimbursement Accounts Tracking Software (HSA)
• Web application for tracking benefits;
• Employment Hiring Candidates Software; or
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COBRA and Health Care Reform

With all the upheaval regarding Health Care Reform, COBRA is still an important option for millions of workers and their families. Contrary to what many predicted, not only did the new health care reform law refrain from eliminating COBRA, it did not change any of the rules. In fact, Congress is still working on COBRA provisions which would expand its realm and make it an even more integral part of the health care reform equation.

The following are some interesting COBRA statistics from the recent Commonwealth Fund Brief survey:

• An estimated 15 million working age adults lost their jobs and health benefits from 2008 through 2010.
• 25% of adults were able to go on their spouse’s insurance policy or find other coverage; however, 14% continued their coverage through COBRA.
• Nearly three quarters (72 %) of respondents who became uninsured skipped a recommended medical treatment or follow-up test; did not get a specialist or other physician care when needed or fill a prescription.
• By comparison, 42 percent who remained insured even after losing their job and health benefits experienced just one of the above problems.
• Nearly three quarters (72 percent) of workers who became uninsured when they lost their job reported at least one problem with medical bills or accrued medical debt compared with 49 percent of adults who remained insured after losing their job and health benefits.
• In 2010, 58 percent of workers, or about 67 million people, would likely have been eligible for COBRA if they had lost their job and health care.
• Unemployed workers with COBRA coverage averaged annual premium costs of $5,049 for an individual plan and $13,770 for a family plan based on employer plan costs in 2010.

Failure to Respond Results in Default Judgment

In the case Cirigliano v. Village of Afton, N.Y. 2010 WL 2735706 (N.D.N.Y., July 9, 2010), the employer’s failure to respond to a COBRA notice claim resulted in a default judgment against it.

Scott R. Cirigliano, Sr. worked as a police officer for the Village of Afton. He and his wife, along with their children, were covered under the Village of Afton’s group health plan. The Ciriglianos alleged that a COBRA qualifying event occurred on or about Sept. 1, 2004; however, the Village failed to notify them of their COBRA rights. According to COBRA law, an employer must notify the plan administrator within 30 days of the event date who then must send a COBRA election notice within 14 days. In this case the Ciriglianos claim that the failure of notice was purposely done in retaliation for an investigation on a political official that Mr. Cirigilaino had been conducting.

The Cirigliano’s alleged that as a result of this notice failure they “suffered extreme prejudice and server financial damages” from the large medical expenses they were left with but could not pay, causing them to ultimately lose their home. Consequently the Ciriglianos sued the Village; however the Village failed to respond to the Ciriglianos complaint. The Ciriglianos then filed for a default judgment against the Village asking for nearly $919,500 in damages. The court ruled in favor of the Ciriglianos by granting the default judgment against the Village of Afton for their lack of response. However, the court stipulated that the Ciriglianos must still provide proof of the cost of damages by requiring that they submit documentation as evidence in the amount they are seeking.

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