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COBRA Notice Triggered By Loss of Employment Not Subsequent Loss of Insurance



by Jed L. Marcus
Bressler, Amery & Ross A Professional Corporation - New York Office

May 17, 2012

Previously published on May 17, 2012

A New Jersey district court just held that an employer who was 293 days late in notifying a former employee of her right to continuation of health insurance coverage was entitled to statutory damages under COBRA from the date of the employee’s discharge even though the employer had mistakenly provided free continuation coverage to the employee for five months after her termination, holding that notice was required on the date of the “qualifying event,” not loss of coverage. Fama v. Design Assistance, Civil Action 10-cv-2057 (D.N.J. April 20, 2012).


 

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