Continuation and Leave Services
COBRA administration and FMLA administration are two of the services hold-harmless protection can reach. Both run on notices and deadlines, which is where provider errors tend to show up.
What to know.
COBRA requires timely notices to people who lose coverage, and a late or missing notice can bring an excise tax and civil penalties. FMLA requires the employer to keep group health coverage going during protected leave on the same terms.
Whether the protection attaches to these services depends on the service agreement. Confirm both are listed and ask what the provider is responsible for in each.
Where to look next.
COBRA Administration
Notices, deadlines and continuation coverage.
FMLA and Group Health Coverage
How leave connects to the plan.
The Compliance Calendar
The dated notices and filings employers owe.
Why notices are the common failure point.
COBRA works on a sequence of dated events: a qualifying event, a notice from the employer to the administrator, an election notice to the individual and a deadline for the individual to respond. Each step has a date, and a slip anywhere in the chain can create a penalty. FMLA works differently, since the issue is keeping coverage going on the same terms during leave, which depends on accurate tracking of leave dates and premium payments.
Because both services depend on information the employer supplies, the first control is a reliable reporting routine: a defined way to tell the provider about terminations, reduction in hours and leaves, with a date stamp. Pair that with a review of the provider’s notice log, and the protection has the evidence it needs if it is ever used.
Common questions on this topic.
Four questions to settle before you rely on it.
Does the protection cover COBRA notices?
It can, if COBRA administration is a listed service and the error was the provider’s. Check the written terms.
Does it cover FMLA mistakes?
Only where FMLA administration is a covered service in the agreement.
What is the usual COBRA error?
A notice sent late, sent to the wrong address or not sent. Dated records show where the delay came from.
Do we still have duties on our side?
Yes. The employer has to report qualifying events promptly and stay responsible for plan compliance.
How quickly should we report a qualifying event?
As soon as it happens. The agreement should state how many days the provider needs to act, and any delay on the employer side can shift responsibility.
Who tracks FMLA leave?
It depends on the agreement. Confirm in writing whether the provider tracks leave dates and premiums or whether the employer does, and which of these the protection covers.
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General information about compliance service protections, not legal or tax advice. Plan-specific questions belong with your counsel, and we will bring them in.
Related guides.
What Hold-Harmless Protection Covers
The overview this page belongs to.
Compliance Services With Hold-Harmless Protection
What the protection is, what it covers and what to ask.
Reporting and Notices Services
The next question on the same topic.
Where the Rules Come From.
The laws and rules named on this page link to the statute or regulation they come from. This is general information, not legal or tax advice, and rules change, so check the current text.
COBRA Excise Tax (26 U.S.C. 4980B)
The tax on failures to meet COBRA continuation coverage requirements.
ERISA Civil Enforcement (29 U.S.C. 1132)
Includes the daily amounts a court may assess for failing to provide required notices.
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