US Labor Department achieves restoration of nearly $2M in health benefits for welfare benefit plan clients of Cox Enterprises Inc.

WASHINGTON – The U.S. Department of Labor has secured a nearly $2 million correction by Cox Enterprises Inc. after the Atlanta, Georgia-based company violated the Employee Retirement Income Security Act. Cox placed annual limits on the dollar amount of benefits that participants and beneficiaries of adult preventive care could claim in plan years 2011, 2012 and 2013. The law prohibits companies from placing annual limits on health benefits.

Cox Enterprises has voluntarily restored $1,986,918 to 4,564 affected participants. The company reprocessed all adult preventive care services claims that had previously been denied because they exceeded the plan’s annual limit of $500 in plan years 2011 and 2012 or $750 in 2013. Cox has also notified participants requesting they submit all claims that had not been submitted previously because they exceeded the limit.

“We are pleased that Cox Enterprises Inc. has taken steps to resolve this issue,” said Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi. “So many workers rely on their employment-based benefits to stay healthy, and it’s important that they be able to fully take advantage of preventive care services.”

Cox Enterprises is a communications, media and automotive services company with more than 50,000 employees, whose subsidiaries include AutoTrader.com Inc., Kelley Blue Book Co. Inc., Manheim Auctions, Savings.com Inc. and Valpak Direct Marketing Systems Inc.

The voluntary correction was the result of an investigation conducted by EBSA’s Atlanta Regional Office.

Employers and workers who have questions or concerns about an employee benefits plan can contact a benefits adviser at www.askebsa.dol.gov or by calling 866-444-EBSA (3272).