Travis Software Official Blog

Recently, the Missouri Western District Court acknowledged an employer’s effort of “good faith” compliance, evidenced by implementing a COBRA notice tracking program, which provided an ability to show documentation and proof of the mailing of correspondence. This statement further confirms the value that TravisCobra and WebCOBRA may have in a case where penalties for non-compliance with COBRA requirements are being sought.

This case is notable because it was not necessary for the court to specifically mention the employer’s COBRA compliance program, but chose to do so in an effort to demonstrate the perceived value of utilizing one. Having a comprehensive COBRA administration program, like TravisCobra and WebCOBRA, helps administrators with notification, tracking, and managing COBRA requirements, and can carry a significant amount of influence for plan administrators in court.

In this specific case, a terminated employee sought penalties from his former employer, stating that the employer failed to provide a proper COBRA Election Notice. While the employer conceded that neither a General Notice nor an Election Notice was provided to the employee, the Court determined that there were not any damages, because the employer had continued to provide the employee with coverage at no cost to him for almost two years after his separation from employment. This two (2) year continuation of coverage extended until the plaintiff’s disability-based Medicare entitlement date. The court determined that no penalties were warranted against the employer, and ruled that the employer acted in good faith by providing the employee with coverage and by subsequently implementing a COBRA notice tracking program.