Can the DOL impose penalties for failure to provide a notice of Special Enrollment Rights? Does anyone have any insight into what action the DOL can undertake if they come accross such a failure. It appears the IRS has authority over this HIPAA provision.

I think it is the Dept of Health & Human Services that has authority over HIPAA. They are related to the DOL, so I'd guess taht failure to alert people to HIPAA Special Enrollment is an ERISA violation. If the DOL is investigating an employer for this, though, it might be worthwhile to try to structure an argument that the DOL does not have jurisdiction.

thanks, that confirms my understanding as well. The IRS may also impose an excise tax but right now, i'm looking at a situation that your argument addresses.

It would appear that the special enrollment rights are treated as a part of HIPAA's portability provisions and under the DOL's jurisdiction.

http://www.dol.gov/ebsa/pdf/CAGHIPAA.pdf