Saturday, March 1, 2008
COBRA NOTIFICATION
When COBRA notices are sent to those entitled for the benefits, a company only needs to show that it made a good faith effort when sending the notification. In the case of Degruise v. Sprint Corp, the company could prove that they made a good faith effort when they mailed the notification through certified mail. Even though the letter was returned to the employer because it was undeliverable, and was not mailed a second time, the company met its obligation. The court should rule in favor of Sprint Corp. DB
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This issue is whether the employer met its obligation under COBRA to provide adequate notice of the right to elect continuation coverage. According to the Fifth Circuit, employers are required to use means of providing notice “reasonably calculated” to reach plan participants, but are not responsible for ensuring the receipt of such notice. It was enough that Sprint attempted to notify the employee by sending certified, first class mail. The fact that it subsequently discovered that the letter went undelivered is immaterial. They had made a “good faith” attempt to provide notification. Thus, there was no violation of COBRA.
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