Penalty Crisis Averted | JGS Insurance 

Penalty Crisis Averted


A manufacturing company in New Jersey with 200 employees had a long standing relationship with an employee benefits consulting firm who touted their compliance services for the last 15 years. An employee with a serious health condition was terminated due to poor performance and complained to senior management that she was wrongfully terminated based on her health condition. During this ordeal the company discovered on their own that they are required to have a HIPAA Privacy Policy and a “Wrap” Summary Plan Description (SPD) or face significant fines and non-compliance penalties – especially if the DOL and HHS had discovered the absence of these documents during an investigation of a disgruntled employee or a routine audit.



  1. Educate company on compliance
    • The absence of the HIPAA Privacy Policy and the Wrap SPD are two of the most important documents needed to administer a compliant benefits program.
  2. Identify voids in current benefits program
    • JGS determined they were also missing several other key documents and procedures that must be followed throughout the year.
  3. Implement compliance strategies
    • Potential issues and monetary fines would now be avoided.



  • The company could now run their business while JGS “has their back.”
  • Implemented cost saving strategies that had no downside impact on their employees.
  • Offered additional resources to their HR Department that would reduce their workload.
  • These initiatives kept both management and the employees happy and in the end made the company look good.


Our compliance know-how saved our client thousands in potential penalties.

View All Case Studies