Demand for personal participant documentation a condition

[Guest Iwonder]

A very large multinational conglomerate in the Chicago area is requiring participants in the health plan to mail certified copies of personal documentation to an outsourced location in Florida, stating that these documents are needed to prove eligibility of the participants' dependants. Participants must provide marriage licenses, birth certificates, adoption records, court orders (e.g., for foster children), etc. by sending the documents to a Florida post office box of the outsourced service provider.

Participants are uneasy about sending such personal information to the location, but would not refuse to show the information to a person.

Participants are told that should the records not be sent to the location by May 1st 2010, that the participants' dependents would lose coverage as of June 1, 2010 and would not be entitled to COBRA.

Any advice as to how to proceed in objecting would be appreciated, and any advice as to provisions of ERISA that do not require such measures would also be appreciated.

This company has a history of having violations/loss of employee information through theft or other manner.

Thank you.