Cobra Notification Requirements

If you do not receive timely or proper COBRA notice, you may bring an action against your employer.

COBRA is a federally mandated continuing health insurance program that was enacted under the Consolidated Omnibus Reconciliation Act of 1986. It requires that employers allow employees the right to continuing health care in the event of certain specified events (called qualifying events) that would otherwise terminate their health care coverage. These individuals are called qualified beneficiaries. There are specific notices required under COBRA that explains COBRA rights.

General COBRA Notice

This is a notice that is given by a group health plan to everyone within 90 days of beginning coverage It describes an individual's rights under COBRA if the individual becomes eligible. It also includes general descriptions of the plan and notice requirements if a qualifying event occurs. The Department of Labor has also created a model general COBRA notice.

Notice of COBRA Qualifying Event

This notice must be provided to the plan by the employer in the event that it is responsible for the action that creates the qualifying event, such as termination of the employee's employment. The employer must provide this notice within 30 days of the qualifying event. The employee must notify the plan within 60 days of a qualifying event that is within the employee's control, such as a divorce.

COBRA Election Notice

Qualified beneficiaries must be sent this notice within 14 days of the plan administrator being notified of a qualifying event. It must be sent to anyone who is a qualified beneficiary, which includes the beneficiaries or spouse of the employee that is losing health coverage. Federal law has very specific requirements for the content of the COBRA election notice. The notice must contain basic information about the health plan, the qualifying event, identifying the qualified beneficiaries as well as instructions regarding the election of continuation coverage and details about that coverage. The Department of Labor has created a model election notice.

Other COBRA Notices

When a plan denies an individual's request for continuing health coverage, it will issue a notice of unavailability of continuation coverage. By law, this notice must be provided within two weeks of the date the request is received and it must contain the reasons for the denial. Another notice that is not a standard COBRA notice is the notice of early termination of continuation coverage. Group health plans may terminate coverage early for a variety of reasons but the plan must specify why and notice must be given as soon as practicable after the plan has decided to terminate coverage early.

References

• DOL: An Employer's Guide to Group Health Continuation Coverage under COBRA