COBRA Notice Letter (Sample, Example & How to Write?)May 1, 2023

If you’re an employer or COBRA administrator, you may be responsible for issuing COBRA notice letters to eligible employees. COBRA, or the Consolidated Omnibus Budget Reconciliation Act, is a federal law that requires employers with 20 or more employees to offer continued health insurance coverage to employees who experience a qualifying event, such as job loss, reduction in hours, or divorce.

In this article, we’ll provide a comprehensive guide on how to write a COBRA notice letter, including a sample and an example.

What is COBRA?

COBRA stands for Consolidated Omnibus Budget Reconciliation Act. Federal law requires employers with 20 or more employees to offer continued health insurance coverage to employees and their dependents who lose coverage due to certain qualifying events, such as termination of employment, reduction in hours, divorce, or death of the covered employee. COBRA allows eligible individuals to continue their health insurance coverage for a limited period, usually up to 18 months, by paying the full cost of the coverage.

Sample of COBRA Notice Letter

Template 1:

Here is a sample COBRA notice letter:

[Date] [Employee Name] [Employee Address] [City, State ZIP] Dear [Employee Name], As a former employee of [Employer Name], you are eligible for continued health insurance coverage through COBRA. This letter informs you of your rights under the Consolidated Omnibus Budget Reconciliation Act (COBRA) and provides information on how to continue your health insurance coverage. Your qualifying event for COBRA is [termination of employment/reduction in hours/divorce, etc.], which occurred on [date]. You can continue your health insurance coverage through COBRA for up to 18 months. We offer the following health insurance plans through COBRA: [Name of plan] – Monthly cost: $[cost] [Name of plan] – Monthly cost: $[cost] [Name of plan] – Monthly cost: $[cost] Please note that COBRA coverage is typically more expensive than the cost of coverage while employed. However, it may be less expensive than purchasing coverage through the individual market. To enrol in COBRA coverage, complete the enclosed enrollment form and return it to our COBRA administrator, [name and address], by [enrollment deadline]. You must also include your first month’s premium payment with your enrollment form. If you have any questions about COBRA or need assistance enrolling in coverage, don’t hesitate to contact our COBRA administrator at [phone number] or [email address]. Sincerely, [Employer Name] [Employer Address] [City, State ZIP] [Employer Phone Number]

Example of COBRA Notice Letter

Example 1:

Here’s an example of a COBRA notice letter:

[Date] [Employee Name] [Employee Address] [City, State ZIP] Dear [Employee Name], We regret to inform you that your employment with [Employer Name] has been terminated as of [termination date]. Due to this qualifying event, you are eligible for continued health insurance coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA). Under COBRA, you can continue your health insurance coverage for up to 18 months. We offer the following health insurance plans through COBRA: [Name of plan] – Monthly cost: $[cost] [Name of plan] – Monthly cost: $[cost] [Name of plan] – Monthly cost: $[cost] Please note that COBRA coverage is typically more expensive than the cost of coverage while employed. However, it may be less expensive than purchasing coverage through the individual market. To enrol in COBRA coverage, complete the enclosed enrollment form and return it to our COBRA administrator, [name and address], by [enrollment deadline]. You must also include your first month’s premium payment with your enrollment form. If you have any questions about COBRA or need assistance enrolling in coverage, please contact our COBRA administrator at [phone number] or [email address]. Sincerely, [Employer Name] [Employer Address] [City, State ZIP] [Employer Phone Number]

How to Write a COBRA Notice Letter?

1. Start with a formal introduction: Begin the letter by addressing the employee by name and including their address. This formal introduction sets the tone for the letter and shows the employee that it is important and requires their attention.
2. Explain the qualifying event: The next step is to explain the qualifying event that makes the employee eligible for COBRA coverage. This could be job loss, reduced hours, or other events resulting in health insurance coverage loss.
3. Provide details about COBRA coverage: The letter should provide detailed information about the COBRA coverage options available to the employee. This includes the types of plans offered, the cost of each plan, and any deductibles or copays associated with the plans.
4. Include enrollment instructions: To enrol in COBRA coverage, the employee must complete an enrollment form and submit it by a specific deadline. The letter should include detailed instructions on enrolling, including where to send the enrollment form and the deadline for submission.
5. Include contact information: The letter should include contact information for the employer or COBRA administrator, including phone numbers and email addresses. This information is important if the employee has questions or needs enrollment assistance.

How to Send a COBRA Notice Letter?

COBRA notice letters can be sent by mail, email, or hand-delivered to the employee. It’s important to keep a record of the delivery of the notice letter to ensure compliance with COBRA regulations.

Employers and COBRA administrators must send COBRA notice letters within 14 days of the qualifying event. Failure to provide timely and accurate COBRA notice letters can result in penalties and legal action.

Conclusion

COBRA notice letters are an important part of compliance with federal laws that require employers to offer continued health insurance coverage to employees who experience a qualifying event. By following the steps outlined in this article and using the sample and example letters provided, employers and COBRA administrators can ensure that their COBRA notice letters are accurate, complete, and timely.

FAQs

---

Read Related Articles:

Thank You Letter to an Employee (Sample, Example & How to Write?)

Attendance Warning Letter: Format, Template, Example, Tips

Grievance Letter – Format, Importance, Meaning, Examples, and More

Behavioral Warning Letter – Format, Example, Definition, and Tips

Reference Check Letter (Sample, Example & How to Write?)

Immigration Verification Letter (Format, Example & How to Write?)