Adherence to the COBRA health care continuation rules is not
always high on an employer's list of priorities. Compliance is
often "outsourced," and even when handled
"in-house," it rarely consumes much attention. A recent
case, Hager v. DBG Partners,
Inc., illustrates that inattention can be costly for
employers. This post explains why.
What Went Wrong?
While the facts of the case are admittedly unusual, the outcome
is still instructive for employers. Plaintiff, David Hager, was
terminated from his position as chief executive officer of DBG
Partners, Inc ("DBG"). DBG notified Hager of his
termination by written notice mailed to his current (and correct)
home address. While employed, he was covered under DBGs's group
health plan. Following his termination, Hager elected to continue
his group health plan coverage under COBRA. At some point during
his COBRA continuation period, DBG terminated its group health
plan, notice of which was mailed to Hager's prior home
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