Compliance Corner

November 08, 2022


Podcast Episode 130: More COBRA Cases — Class Actions and COBRA Election Notices

In this episode, Suzanne Spradley and Chase Cannon discuss several recent COBRA cases. Suzanne starts by outlining several class action lawsuits filed against employers and plan sponsors relating to deficiencies in an employer health plan’s COBRA election notice. Suzanne and Chase discuss the use of the DOL’s Model Election Notice and how that usage interacts with potential DOL regulatory fines and participant lawsuits, and how employers can get into trouble by not including the appropriate information in the model or other election notices. Suzanne then describes a lawsuit against a single employer relating to a COBRA election notice delivery failure, including the involvement of a TPA.

Periodically, NFP's legal experts make the subject of compliance personal for a wide audience. By breaking down the daunting details of emerging policies and bridging the gap between legislation and what it means for the listener, Chase Cannon and Suzanne Spradley make compliance issues relatable and relevant. Visit our Soundcloud page for the most up-to-date episode.

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November Get Wise Wednesdays – Register Now

Topic: Transparency in Coverage: Where Are We Now?

Description: The Consolidated Appropriations Act of 2021 and Transparency in Coverage final rule included a number of provisions intended to increase transparency in health coverage. This webinar will focus on the current state of those provisions, including ones that have already been implemented and others that are set to become effective in the coming months.

Time: November 16, 2022
2:00 to 3:00 p.m. CT (3:00 to 4:00 p.m. ET)

Register Now

This program is pending approval for 1.0 (general) recertification credit hours toward PHR, SPHR and GPHR recertification through the HR Certification Institute. For more information about certification or recertification, visit the HR Certification Institute website at

Reminder: It’s MLR Rebate Time Again!

The ACA requires insurers to submit an annual report to HHS accounting for plan costs. If the insurer does not meet the medical loss ratio standards, they must provide rebates to policyholders. Rebates must be distributed to employer plan sponsors between August 1, 2022, and September 30, 2022. Employers should keep in mind that if they receive a rebate, there are strict guidelines as to how the rebate may be used or distributed. The plan asset portion of a rebate generally must be applied within three months of receipt by the employer, or the amount would need to be held in trust to comply with ERISA’s requirements.

For more information, please see our August 16, 2022, FAQ and contact your advisor for a copy of “Medical Loss Ratio Rebates: A Guide for Employers.”