There are potential penalties for employers and individuals who are not in compliance with the COBRA subsidy rules.
For Employers or Plan Sponsors:
Employers who violate COBRA rules (including the requirement to offer a COBRA election and
subsidies under the ARPA) could be subject to penalties equal to $100 per qualified beneficiary or $200
per family for every day that the employer violates COBRA rules. If individuals believe that they have
not received an offer of COBRA due to them, then they are advised to contact the Department of Labor
Individual that receives a subsidy when they were not eligible will be a fine of $250 or 110% of premiums. This applies to individuals who do not report other coverage and receive a subsidy.