A rising threat of litigation is prompting benefits attorneys to caution employers to pay closer attention to the details of notices they provide about how former workers can continue their health coverage.
Lawsuits against companies such as Amazon, General Motors, and Target allege deficiencies in Consolidated Omnibus Budget Reconciliation Act (COBRA) notices that could deter individuals from signing up. COBRA allows former employees to keep their health insurance for limited periods, but few do because they must pay the full cost.
The costs of the litigation can add up. Many of the approximately 50 cases filed over the past ...