What are the consequences for failing to comply with COBRA?
COBRA is the only plan governed by both the DOL and the IRS. Depending on the situation: lost premiums, medical costs, and/or penalties of $110 per day by the DOL for providing a late notice have been documented. The IRS may also assess a fee of $115 per day if your forms are out of compliance. If you arent familiar with COBRA and its provisions you should consult an attorney and/or a Third Party Administrator such as eCOBRA.com.
