What are the initial COBRA notice requirements?
Asked by: Alexandrine Rice | Last update: August 1, 2025Score: 4.1/5 (14 votes)
- A written explanation of the procedures for electing COBRA,
- The date by which the election must be made,
- How to notify the plan administrator of the election,
- The date COBRA coverage will begin,
- The maximum period of continuation coverage,
What are the initial rights notice requirements for COBRA?
The HR office must provide the Initial General COBRA Notice to covered individuals within 90 days of the coverage effective date. An exception to the 90 day rule is when a qualifying event occurs before the initial notice is provided to the employee.
Does COBRA have to start immediately?
You have 60 days to enroll in COBRA once your employer-sponsored benefits end. Even if your enrollment is delayed, you will be covered by COBRA starting the day your prior coverage ended.
How long does an employer have to send a COBRA notice to an employee?
Group health plans must provide covered employees and their families with certain notices explaining their COBRA rights. Your COBRA rights must be described in the plan's Summary Plan Description (SPD), which you should receive within 90 days after you first become a participant in the plan.
What are the requirements for COBRA mailing?
Employers should send notices by first-class mail, obtain a certificate of mailing from the post office, and keep a log of letters sent. Certified mailing should be avoided, as a returned receipt with no delivery acceptance signature proves the participant did not receive the required notice.
How to Send a COBRA Initial Notice
What are the federal requirements for COBRA?
- Your group health plan must be covered by COBRA.
- A qualifying event must occur.
- You must be a qualified beneficiary for that event.
Can COBRA notifications be emailed?
The Email Notification Service allows members the option to receive an email notification in place of receiving a paper letter. The email notifies the member of an available communication and provides instructions to log into the Member Portal to view the communication. The email will be sent from cbizcobra@cbiz.com.
What is the COBRA loophole?
If you decide to enroll in COBRA health insurance, your coverage will be retroactive, meaning it will apply to any medical bills incurred during the 60-day decision period. This loophole can save you money by avoiding premium payments unless you actually need care during this time.
What is COBRA compliance for employers?
COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985) is a federal law that requires employers of 20 or more employees who offer health care benefits to offer the option of continuing this coverage to individuals who would otherwise lose their benefits due to termination of employment, reduction in hours or ...
Does my employer have to offer COBRA if I quit?
Yes, You Can Get COBRA Insurance After You Quit Your Job
Known as the Consolidated Omnibus Budget Reconciliation Act of 1985, this legislation applies to employers with 20 or more employees. State-level Mini-COBRA laws extend similar requirements to small businesses with fewer than 20 full-time employees.
What is the timeline for COBRA?
60 days: The COBRA-eligible participant(s) have 60 days to enroll in coverage. If the COBRA-eligible participant does not elect coverage within 60 days after the notification, they are no longer eligible to elect.
What triggers a COBRA notice?
In general, the COBRA qualifying event must be a termination of employment or a reduction of the covered employee's employment hours.
How long does it take for a COBRA to activate?
The coverage starts the day the previous coverage ends. The employer's COBRA administrator is responsible for sending out an election notice with information about deadlines for enrollment. For example, if employment ends on April 25, COBRA will pick up where the group health plan ends.
What is the process for signing up for COBRA?
- Check Your Eligibility. ...
- Read the COBRA Election Notice. ...
- Enrollment in COBRA.
Why is COBRA so expensive?
COBRA coverage is not cheap.
Why? Because you're now responsible for paying your portion of your health insurance: The cost your employer contributed to your premium, in addition to the 2% service fee on the cost of your insurance.
What is the penalty for COBRA notice?
Failing to adhere to COBRA rules can result in costly penalties. The Department of Labor may impose fines of $110 per day per qualified beneficiary for non-compliance with notice requirements, and the IRS can levy excise taxes for violations.
When should the initial COBRA notice be sent?
COBRA requires employers to provide an initial notice to each covered employee and spouse within 90 days of coverage starting (or from when the plan first becomes subject to COBRA).
What are the rules for COBRA coverage?
You must meet three basic requirements to be entitled to elect COBRA continuation coverage: Your group health plan must be covered by COBRA; • A qualifying event must occur; and • You must be a qualified beneficiary for that event.
Can my employer deny me COBRA?
Under COBRA, a person who has been terminated for gross misconduct may be denied COBRA. Gross misconduct is not specifically defined by COBRA, but when based on an employer's practice or policy it could include misrepresentation during the hiring process or falsifying information on a Form I-9.
What is the 105 day COBRA loophole?
So, if you maxed out the 60 day election period plus the 45 day payment period, you could actually go 105 days without paying for the coverage.
How long after termination can you apply for COBRA?
When do I need to sign up for COBRA? You have 60 days from a “qualifying event” or the date your notice is mailed (whichever is later) to enroll in COBRA. A qualifying life event can be a job loss, divorce or death of your spouse, among others. Your former employer will send you details about how to sign up.
What is a COBRA violation?
Employers have numerous responsibilities under COBRA, including tracking employee notices and deadlines. All too often, employers fail to comply with these requirements. Some common COBRA violations include: Failure to supply initial notice to new employees. Failure to provide notice after a qualifying event.
What happens if an employer does not send a COBRA notice?
Employers who fail to comply with the COBRA requirements can be required to pay a steep price. Failure to provide the COBRA election notice within this time period can subject employers to a penalty of up to $110 per day, as well as the cost of medical expenses incurred by the qualified beneficiary.
Who are the largest COBRA administrators?
WageWorks®, the nation's largest COBRA administrator, is an independent company that provides COBRA compliance services to Arkansas Blue Cross and Blue Shield's fully-insured group business, including Arkansas Blue Cross and Health Advantage.
Can COBRA notices be provided electronically?
However, because COBRA notices must be provided via first-class mail to the home address where a spouse or dependent is also covered under the plan, the plan administrator must obtain consent from the spouse or dependent before delivering COBRA notices electronically.