COBRA compliance is often viewed as a routine administrative task until an investigation or legal claim reveals costly mistakes. While there is no formal federal "COBRA audit program" that randomly reviews employers, COBRA compliance does get reviewed during broader DOL/EBSA benefit plan investigations, and it can also surface through IRS/excise tax exposure and lawsuits.
COBRA is one of those benefits that’s critically important, but widely misunderstood. For employees, it often shows up during stressful life moments like job loss or reduced hours. For employers, that confusion can quickly turn into frustration, compliance risks, and an increase of questions your HR team has to field.
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COBRA administration is detail-driven, deadline-sensitive, and highly visible to participants. When it runs smoothly, it builds confidence. When it doesn’t, it creates confusion fast.
COBRA may not be glamorous, but the penalties are very real. The good news is that most costly COBRA problems come from a handful of small mistakes. Tighten these up, and you dramatically lower your risk!
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As we close out the year, HR professionals managing COBRA face unique challenges—finalizing participant records, ensuring compliance, and preparing a seamless transition into the new year. At iTEDIUM, we’re committed to supporting you every step of the way. Here’s what you can do this December to ensure your COBRA administration is in top shape:
