What Are the Employer Requirements for COBRA Election Notices? 

When a qualifying life event triggers COBRA eligibility, employers in New York have specific, time-sensitive obligations to notify affected employees and dependents. Missing these deadlines or sending incomplete notices can expose a business to significant liability, so understanding the federal requirements is essential for any employer managing group health coverage.

Key Federal Requirements for COBRA Election Notices

Under federal law, employers must follow a strict notification timeline after a qualifying event occurs. The employer must first notify the plan administrator within 30 days of the qualifying event. The plan administrator then has 14 days to send the election notice to qualified beneficiaries, or, if the employer also serves as the plan administrator, the combined deadline is 44 days from the date of the qualifying event. Employees generally have 60 days from the later of the notice date or the date coverage is lost to elect continuation coverage. The election notice must include several required elements:

• The name of the plan and the type of coverage available under COBRA
• A clear description of the qualifying event that triggered eligibility
• The deadline for electing coverage and instructions for doing so
• Information on the premium amount, including that employees may be required to pay up to 102% of the group rate
• Details on how long continuation coverage may last
• Instructions for making premium payments

New York employers should also be aware that New York’s mini-COBRA law applies to fully insured group health policies regardless of employer size, including employers with fewer than 20 employees not covered under federal COBRA, and extends total continuation coverage to up to 36 months, which adds another layer of compliance to manage.

What Happens If Requirements Are Not Met

Failing to send a timely or compliant election notice can result in penalties under ERISA, as well as potential liability for medical claims that would have been covered. Employers should document every step of the notification process carefully.

Getting the Right Coverage Guidance

Managing employee benefits compliance alongside your broader business insurance needs takes careful attention. MAX Total Benefits Solutions, Inc. can help you review your group health arrangements and connect you with carriers that fit your business. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.