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.
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.
Notices, deadlines and continuation coverage.
How leave connects to the plan.
The dated notices and filings employers owe.
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.
Four questions to settle before you rely on it.
It can, if COBRA administration is a listed service and the error was the provider’s. Check the written terms.
Only where FMLA administration is a covered service in the agreement.
A notice sent late, sent to the wrong address or not sent. Dated records show where the delay came from.
Yes. The employer has to report qualifying events promptly and stay responsible for plan compliance.
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.
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.
Ready? Upload your renewal, or talk it through with someone first. No cost, no obligation.
General information about compliance service protections, not legal or tax advice. Plan-specific questions belong with your counsel, and we will bring them in.
The overview this page belongs to.
What the protection is, what it covers and what to ask.
The next question on the same topic.
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.
The tax on failures to meet COBRA continuation coverage requirements.
Includes the daily amounts a court may assess for failing to provide required notices.
We’ll tell you whether it looks competitive, where we see opportunity, and the five questions we’d put to your carrier. No cost, and no obligation to move anything.
The renewal letter
Your current plan summary
Contribution split by tier
Enrolled counts by tier
Four documents, two more if your group is 50 or more. Nothing else; every extra one is a reason to postpone.
An independent employee benefits consulting firm. We look at the entire benefits program — cost, plan performance, risk and administration.
Switch to CFH. Unhappy with your broker? Your employees won’t notice. You will. →
We use cookies to keep the site working properly and to understand how it is used. You can decline anything that is not essential. See our Privacy Policy for the detail.