COBRA carries a bite that could be deadly to your business.

The penalties for employer non-compliance with COBRA are both severe and far-reaching and may include, but, not limited to:

• Under Internal Revenue Code Sanctions, a nondeductible excise tax of $100 per day per violation for each employee during non-compliance period.
• ERISA fines of up ot $110 employee per day of noncompliance.
• Other judgements, legal costs or damages the court deems appropriate, resulting from ERISA and Public Health Services Act violations.  Audit and/or enforcement action by Department of Labor.
• Finally, under ERISA, affected families who have incurred high medical expenses because of an employer's noncompliance are likely to sue to enforce continuation of hteir group rate coverage.  Today's prevalent quick-to-sue attitude makes employers easy targets for suits in noncompliance situations.

There ARE ways to tame COBRA and to control it.

An employer could discontinue its health plan.  Most companies, however, find this unrealistic in a world where competition for quality employees require attractive benefit packages.

Another alternative is to handle COBRA internally.  However, the requirements are an administrative nightmare and the penalties for noncompliance are so severe, the responsibility cannot be placed with just anyone.  It calls for mature, responsible individuals with strong administrative and computer backgrounds.  Even then, a thorough knowledge of the law as well as continous monitoring of changes affecting COBRA is essential.

The third and most realistic choice is to contract a Third Party Administrator who is experienced with COBRA and is set up to assume the administrative burden resulting from this law.

Use CASI now to tame COBRA before it ssstrikes!!!