Avoiding COBRA & ACA Pitfalls Through Expert Plan Analysis

A TPA presented The Phia Group with a complex fact pattern about an employer’s responsibilities related to an employee’s FMLA leave and potential need to offer COBRA. The Phia Group reviewed and dissected each step of the fact pattern to identify the applicable facts and relevant considerations based on the timeline of events.

 

The Phia Group analyzed the plan language and employee handbook to ensure there were no “gaps” between them (that is, situations where the employee handbook promises certain benefits, but the SPD does not, or vice versa). The Phia Group provided guidance in the form of action items for the employer relating to notice deadlines to avoid penalties. The Phia Group’s insight and analysis eliminated the plan’s exposure to an ACA Employer Mandate penalty (for failure to offer coverage) and COBRA penalties (for failure to provide timely notice).

 

By partnering with The Phia Group,the employer met both the COBRA and ACA timelines and requirements, resulting in  savings of $110 per day (COBRA penalty) and $2,900 per full-time employee (ACA penalty).