According to the former Best Buy workers in their class action lawsuit, the electronics company violated federal benefits law by sending them “confusing and incomplete” COBRA notices. These notices, former employee and lead plaintiff Daniel P. alleged, did not include all the information required by the Consolidated Omnibus Budget Reconciliation Act, despite the fact that the U.S. Department of Labor created a model form the company could have used.
Daniel alleged that Best Buy’s choice to not use the model form provided by the Department of Labor was seemingly in order to avoid having to provide the “inherently expensive” COBRA coverage.
The lawsuit was filed on Jan. 15 and was settled in just a few weeks before Best Buy filed a response to the allegations.
Similar issues with COBRA notices that allegedly included confusing, incomplete, or otherwise improper information have also led to litigation. For instance, Lockheed Martin settled a proposed class action for $1.25 million, JPMorgan settled a similar lawsuit, and Lowe’s and Walmart are both facing similar claims.
What Is COBRA?
Essentially, COBRA health insurance is offered to people on a temporary basis after they lose their job, allowing them to extend the same benefits they had at their job for a certain period of time, usually up to 18 months. Most employers with group health plans offer this type of coverage.
COBRA Litigation
Employers are required by law to notify employees if they qualify for COBRA continued healthcare when they leave, as well as provide certain information about this plan. Several companies have been hit with class action lawsuits by former employees who allege that they were not given proper notice of the healthcare benefits they would receive under COBRA after they left the company.
COBRA notices are required to include certain important information, including the date the current plan will terminate without COBRA, an explanation of what coverage includes, the procedure for how to continue coverage, and an explanation of what would happen if coverage is not continued, among several other pieces of information.
If after leaving your previous job you were not properly notified of your ability to opt into COBRA coverage, whether the information was confusing, incomplete, or missing entirely, you may be able to file a lawsuit and pursue compensation.
Litigation can be a daunting prospect, especially while dealing with other stressors after losing a job, so Top Class Actions has laid the groundwork for you by connecting you with an experienced attorney. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.
The COBRA Health Insurance Lawsuit is Case No. 8:20-cv-00110, in the U.S. District Court for the Middle District of Florida.
Join a Free COBRA Class Action Lawsuit Investigation
If you received a COBRA notice that did not fully disclose your rights and how to retain your health insurance following separation from your job, or you received no notice at all, you may be qualify to join this COBRA notice class action lawsuit investigation.
This article is not legal advice. It is presented
for informational purposes only.
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