Elections are a big topic in 2012. With COBRA, elections are always a big topic because many issues arise.

Following are situations that can occur during the COBRA election period: (1) verbal elections; (2) second elections during the election period; (3) tolling the election period; (4) who may elect for whom; and
(5) waiving COBRA elections.

Verbal Elections
The election notice should require the qualified beneficiary to complete and return the election form provided. This proves their intent of what coverages and for whom they are electing. This avoids the game of who said what if a verbal election was used. Two cases illustrate the dangers of verbal elections.

Lackman v. Recovery Services Of New Jersey, Inc.
In Lackman v. Recovery Services of New Jersey, Inc., a misunderstanding occurred regarding the continuation of benefits that was verbally addressed during the exit interview. The qualified beneficiary (Lackman) understood he would have extended coverage for two months. The employer stated it would
extend coverage for one month as a courtesy.
 
The court determined the conversation during the exit interview was irrelevant since Lackman had received his COBRA election notice a few days after his termination. The notice informed him that he had 60 days from his date of termination to make an election. This misstated the law. The election period is actually 60 days from the latter of the loss coverage date, or the date the notice is sent. In this situation, the extra month of coverage should have extended the election period. Also, the notice failed to include an essential element, which was the loss of coverage date.

Read the full article here.