This Construction Company has been servicing the Southern California area for over 30 years. Certified and licensed they handle anything from small repairs to large multi-millions dollar projects.
As is often the case with small business, some things tend to fall through the cracks. In this client's case, the communication regarding an employee who had applied for COBRA was absent.
It may seem like as if the problem is a small one, however, failure to comply with COBRA laws can end up costing a company hundreds, if not thousands of dollars in fines and penalties. Let's not forget the possibility of lawsuits and the financial costs associated with defending yourself.
Since they dropped the ball, so to speak, they were in a risky situation and called us for help.
After reviewing their situation, we knew we had to act quickly. The potential risk to the employer would only be exacerbated if the time it took to resolve the situation was prolonged. We acted quickly by:
We knew if we did not act swiftly the potential costs would be extremely detrimental to the employer.
Within 48hrs the COBRA beneficiaries' coverage was corrected retroactively.
By moving quickly and having the relationships with the insurance company and COBRA vendors, we were able to avert a costly situation for the employer.