Delta Allegedly Violated COBRA Insurance Rules

Delta Airlines was recently hit with a class action lawsuit claiming that the company violated COBRA insurance rules with insufficient notices.

According to plaintiff Anita E., she and other employers were allegedly denied sufficient notices after termination – despite requirements of the Consolidated Omnibus Budget Reconciliation Act (COBRA). This federal law requires employers to provide clear and understandable notices of continued health coverage after an employee loses their job.

Anita was allegedly fired from her job at Delta in July 2018 after working for the company for 18 years. After her termination, she was allegedly given a deficient COBRA notice that did not sufficiently inform her that she could continue her health insurance coverage at her own expense.

“The deficient COBRA notices at issue in this lawsuit both confused and misled Plaintiff,” the COBRA class action lawsuit claims. “It also caused Plaintiff economic injuries in the form of lost health insurance and unpaid medical bills, as well as informational injuries.”

The alleged COBRA violation was reportedly significant to Anita and her family because she was diagnosed with a “serious” health condition weeks before she was fired. Treatment for this condition allegedly resulted in uninsured medical expenses.

Anita seeks to represent a Class of participants or beneficiaries in Delta’s health plan who were sent a COBRA notice and did not elect to continue their coverage. On behalf of herself and these Class Members, Anita seeks equitable relief, statutory penalties of $110 per day, court costs, and attorneys’ fees.

The COBRA Insurance Rules Class Action Lawsuit is Case No. 8:20-cv-00269-MSS-AEP in the U.S. District Court for the Middle District of Florida.

Overview: COBRA Insurance Rules

Many large employers provide group health coverage to their employees as a benefit of their employment. In fact, paying at least part of health insurance premiums for their employees is required under federal law.

Under COBRA, employers can stop paying its share of premiums if an employee becomes ineligible for coverage. This includes if they are fired or if they fall below a weekly hours worked threshold. However, employers are required to provide specific notices in order to inform plan participants of their rights under COBRA.

The first required notice is the Summary Plan description which should be received within the first 90 days of coverage. This should describe a plan participant’s rights under COBRA.

After a qualifying event such as termination, plan administrators have 14 days to send another COBRA notice. This notice should inform participants and beneficiaries of their rights under COBRA and how to continue their health insurance coverage. One key aspect of these notices is that they should be in plain language that is easy to understand.

If a company fails to comply with COBRA insurance rules, they may be held legally liable in class action lawsuits like the complaint brought against Delta. Consumers who think they were denied sufficient COBRA notices may want to speak to a qualified attorney to determine their eligibility for legal action. An experienced lawyer will be able to determine if your notice, or lack thereof, violated the law.

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.

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This article is not legal advice. It is presented
for informational purposes only.