What happens if an employer doesn't send COBRA notice?
Asked by: Marielle Sporer | Last update: January 2, 2026Score: 4.7/5 (43 votes)
What is the penalty for not giving 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.
What if my employer didn't send me COBRA information?
If you are eligible for Federal COBRA and did not get a notice, contact your employer. If you are eligible for Cal-COBRA and did not get a notice, contact your health plan. If you miss the deadline, you may lose the chance to sign up for Federal COBRA or Cal-COBRA. Call the Help Center if you have any questions.
How long does a company have to send COBRA information?
Your employer must mail you the COBRA information and forms within 14 days after receiving notification of the qualifying event. You are responsible for making sure your COBRA coverage goes into and stays in effect - if you do not ask for COBRA coverage before the deadline, you may lose your right to COBRA coverage.
Can I sue my employer for not offering COBRA?
The employees along with the beneficiaries have the right to sue to cover the medical expenses that would have taken place when the COBRA should have been offered.
What Happens to COBRA Benefits after Being Fired? Employer Obligations & Violations Explained
Can an employer deny COBRA coverage?
Gross misconduct provides a basis for denying COBRA coverage to the employee and to the employee's dependents.
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.
Who is responsible for sending a COBRA notice?
COBRA Election Notice and Election Form. The HR office is required to provide an election notice and election form to covered employees and their qualified beneficiaries within 14 calendar days of a COBRA qualifying event or when the HR office is notified, whichever comes first.
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 the timeline for COBRA notices?
Within 14 days of that notification, the plan administrator is required to notify the individual of his or her COBRA rights. If the employer also is the plan administrator and issues COBRA notices directly, the employer has the entire 44-day period in which to issue a COBRA election notice.
Why hasn't my COBRA kicked in?
You may be facing a lag time between your payment and the administrator paying the insurance carrier who provides your continuation of group health coverage. To contact your plan administrator, follow the instructions on the original paperwork you were sent about starting COBRA.
How do I get COBRA through my employer?
Applying for COBRA begins with the employer who provided the health plan to notify you of your right to continuation. The employer has 30 days to notify the group health plan of the qualifying event. After that, the employer has 14 days to notify you of your COBRA right to keep your work health insurance.
What happens if you don't make a COBRA payment?
You can be required, however, to make an initial premium payment within 45 days after the date of your COBRA election (that is the date you mail in your election form, if you use first-class mail). Failure to make any payment within that period of time could cause you to lose all COBRA rights.
What if my employer never sent COBRA information?
What If I Did Not Receive a COBRA Election Letter? We recommend working with the employer's human resources department. Call and ask them to resend the health insurance continuation election form. They may refer you to their third-party administrator.
Can I get COBRA if I quit without notice?
Yes, You Can Get COBRA Insurance After You Quit Your Job
COBRA allows you to keep your employer-sponsored health insurance for up to 18 months if your coverage ends due to job loss, quitting or termination.
Why did I get a COBRA notice in the mail?
Strict legal requirements govern when many employers must send COBRA continuation notices to their employees. Employers are often required to send notifications (or have them sent by a plan administrator) when employees experience qualifying events — which can include a reduction in hours or termination.
Can a company not offer COBRA?
Q3: Which employers are required to offer COBRA coverage? COBRA generally applies to all private-sector group health plans maintained by employers that had at least 20 employees on more than 50 percent of its typical business days in the previous calendar year.
Does insurance end the day you quit?
When you leave or are let go from a job, your health insurance either expires on your last day of work or at the end of the month of your exit, says Andy Gillin, attorney and managing partner at GJEL Accident Attorneys. For example, if you quit on July 15th, your coverage usually continues until July 31st.
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.
What is the penalty for late COBRA notice?
Failure to provide the COBRA election notice within this time period can subject employers to a penalty of up to $110 per day, at the discretion of the court, as well as the cost of medical expenses incurred by the qualified beneficiary. Background.
What is the time limit for COBRA?
Periods of Coverage
In most cases, COBRA coverage for the covered employee lasts a maximum of 18 months. However, the following exceptions apply: 29-Month Period (Disability Extension): Special rules apply for certain disabled individuals and family members.
Can COBRA notices be sent 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.
Can I sue my employer for not providing COBRA?
In certain cases, yes, you can sue your employer for not offering COBRA. Employers are obligated to inform eligible employees about the availability of insurance coverage under COBRA and the requirement for employees to pay the full premium.
When should a COBRA notice be sent?
Under COBRA, when must the plan administrator provide qualified beneficiaries with the General Notice? The plan administrator must provide qualified beneficiaries with the General Notice within 90 days after initial plan coverage begins.
Do COBRA notices have to be mailed certified?
Employers should send notices by first-class mail to the employee's last known address and keep a log of letters sent, or obtain a certificate of mailing. Certified mailing should be avoided, as a returned receipt with no delivery acceptance signature proves the participant did not receive the required notice.