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Your COBRA Communication Duties

April 13, 2006

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COBRA stresses communication to the employee of the right to continue benefits when a qualifying event occurs. Some of the communications requirements are listed below.

• You have to notify covered employees and covered spouses of their initial rights under COBRA when they first join the plan.
• You have to notify covered persons of their election rights to continue coverage after a qualifying event occurs.
• You have 30 days to notify the plan administrator (usually the insurance company) when a loss occurs for any of the reasons listed above, except for divorce and change of status by a dependent. In those two instances, you have 60 days to notify the administrator. The administrator has 14 days after notice from you to notify the person who is entitled to COBRA coverage.

The Business Tools contains a copy of the Department of Labor's form letter. It can be used to comply with your initial notice requirements.

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