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Publisher of COBRA OnQue ®,
expert COBRA
administration software.
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| Employer, Not TPA, Was Liable for COBRA
Violation |
September 4, 2002
Santa Rosa, CA |
Phillip Hall, a terminated employee who was covered
under his employer's group health plan, alleged that when he left his
employment he was not notified of his continuation coverage rights. He sued his
employer, CWR Construction, and the employer's TPA. The employer claimed that
liability for the violation rested solely with the TPA, United HealthCare of
Arkansas, with whom it contracted two years after hiring Hall. However, there
was no evidence of any communication to the employee that the administrator of
his plan had been changed.
RULING: The court found that no plan administrator had been
properly named, and so the employer remained the plan sponsor and was
responsible for ensuring that the employee was properly notified of his
continuation coverage rights. The employee's suit against the TPA was
dismissed, but his claim against the employer for failure to provide the
required COBRA notice was allowed to proceed.
(Hall v. CWR Construction, Inc, U.S. District
Court, Eastern District of Arkansas, Western Division, Dkt. No. 4:01CV00459,
August, 2002)
NOTE: OnQue
COBRA News recently reported a similar decision holding the employer, not the
TPA, responsible for COBRA violations. That ruling came from the Eleventh
Circuit Court of Appeals, which covers Alabama, Florida and Georgia.
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Copyright © 2002 OnQue Technologies, Inc. All Rights Reserved.
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