Ex-Costco Worker Sues Over Allegedly Threatening Health Notices

June 10, 2021, 5:12 PM

A one-time Costco Wholesale Corp. employee filed a federal lawsuit in Florida that alleges the company sends “ominous” and legally deficient notices informing former workers of their right to keep their health insurance coverage.

Costco’s COBRA notices include a “needless and inaccurate” warning telling ex-employees that they may be subject to criminal or civil penalties if their coverage elections are incomplete, John Baja said Wednesday in a proposed class action complaint.

This warning discourages people from electing coverage and violates the federal law mandating that COBRA notices be written “in a manner calculated to be understood by the average” health ...

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