Which civil remedy may be imposed on employers for COBRA violations?

• A. Civil liability to individuals who suffered losses due to not receiving the health insurance coverage to which they were entitled
• B. Criminal penalties
• C. Tax penalties
• D. License suspension

Answer: (A)

Under COBRA, if an employer or plan administrator fails to provide the required continuation coverage or the mandatory notices, the remedy available is civil liability to the individuals who suffered losses because they did not receive the coverage they were entitled to. This means the harmed person can seek damages to compensate for the cost and consequences of losing or not obtaining the continuation coverage, and in some cases may recover attorneys’ fees. The purpose is to make the harmed individuals whole and to encourage compliance.

Criminal penalties, tax penalties, or license suspension are not the civil remedy described for COBRA violations; those options are not the typical civil remedy owed to individuals under COBRA.