COBRA Election Notice Requirements

The election notice is the formal written document that triggers a qualified beneficiary's right to choose COBRA continuation coverage following a qualifying event. Federal law under the Consolidated Omnibus Budget Reconciliation Act of 1985, codified primarily at 29 U.S.C. §§ 1161–1168, sets strict content and delivery standards for this notice. Failure to meet those standards exposes plan administrators and employers to significant statutory penalties. This page covers what the election notice must contain, how it must be delivered, the scenarios that trigger it, and how it differs from other COBRA notices.

Definition and scope

The COBRA election notice is the document sent to each qualified beneficiary after a qualifying event has been identified and reported. Its legal purpose is to inform the beneficiary of the right to elect continuation coverage, the cost of that coverage, and the deadline by which an election must be made. The notice is governed primarily by ERISA § 606 and implementing regulations issued by the U.S. Department of Labor (DOL) at 29 C.F.R. Part 2590.

The scope of the obligation is broad. Every qualified beneficiary — defined under ERISA § 607 to include the covered employee, the employee's spouse, and dependent children — must receive a separate election notice. A spouse and dependent children cannot be bundled into a single notice addressed to the employee unless both the spouse and employee reside at the same address; in that case, a single notice mailed to that address satisfies the requirement under DOL guidance at 29 C.F.R. § 2590.606-4(b)(4)(iii).

The election notice is distinct from two other required communications: the general notice (also called the initial notice), which is provided at the time of enrollment, and the qualifying event notice, which the employer or employee sends to the plan administrator after a triggering event occurs. A full account of how these three notice types interact is covered under the regulatory context for COBRA administration.

How it works

Once the plan administrator receives notice of a qualifying event, federal law sets a hard 14-day deadline to send the election notice to each qualified beneficiary (29 C.F.R. § 2590.606-4(b)(1)). If the employer is also the plan administrator, the deadline extends to 44 days from the date of the qualifying event — a composite of the employer's 30-day reporting window plus the administrator's 14-day sending window.

The DOL has published model election notice templates that, when properly completed, provide a safe harbor for compliance. These templates are available from the DOL's Employee Benefits Security Administration (EBSA) and are discussed in detail at Model COBRA Notices — DOL Templates.

A compliant election notice must include the following elements:

  1. Identification of the plan — the name of the group health plan and the plan administrator's name, address, and telephone number.
  2. Description of continuation coverage — the type and scope of coverage available, including all plans the qualified beneficiary may elect.
  3. Election deadline — the date by which the election must be made, which cannot be less than 60 days from the later of (a) the date coverage is lost or (b) the date the election notice is sent (29 U.S.C. § 1165(1)).
  4. Premium amount — the cost of each coverage option, including the 2% administrative fee permitted under 29 U.S.C. § 1162(3).
  5. Payment procedures — instructions on how and where to submit premiums, including the applicable grace periods.
  6. Duration of coverage — the maximum period of continuation coverage available under each qualifying event type.
  7. Disability extension information — a description of the 11-month disability extension available under 29 U.S.C. § 1162(2)(A)(ii) and the notification deadlines that apply.
  8. Early termination events — circumstances under which continuation coverage may end before the maximum period expires.
  9. Trade Adjustment Assistance (TAA) information — if applicable, notice of TAA-related election rights under the Trade Act of 2002.

Delivery must be made by a method reasonably calculated to ensure actual receipt. First-class mail to the last known address satisfies this standard under DOL regulations. Electronic delivery is permissible under DOL's electronic disclosure safe harbor at 29 C.F.R. § 2520.104b-1, but only when specific conditions — including the beneficiary's ability to access the document — are met.

Common scenarios

Job loss or reduction in hours. Termination of employment (other than for gross misconduct) and a reduction in hours that causes loss of coverage are the two most frequent triggering events. The employer must notify the plan administrator within 30 days, and the administrator then has 14 days to send the election notice. The COBRA home resource provides a full map of qualifying events and their associated timelines.

Divorce or legal separation. In divorce situations, the employee's former spouse is individually entitled to an election notice. Because the employer may not learn of the divorce until informed, ERISA § 606(a)(3) requires the employee or the qualified beneficiary to notify the plan administrator within 60 days of the divorce or legal separation. If that notification is not provided within 60 days, the right to COBRA may be forfeited.

Death of the covered employee. All surviving qualified beneficiaries — spouse and dependent children — must each receive a separate election notice. The employer has 30 days from the employee's death to notify the plan administrator.

Dependent aging out. A dependent child who loses status under the plan's age limits (typically age 26 under ACA rules) is a qualifying event. The plan administrator must send an election notice to the dependent directly if the dependent's address is on file and differs from the subscriber's address.

Decision boundaries

Election notice vs. general notice. The general notice is provided within 90 days of enrollment and describes COBRA rights in general terms. The election notice is event-specific and actionable — it sets a concrete deadline and triggers the 60-day election window. The two documents serve different legal functions and one does not substitute for the other.

Plan administrator vs. employer responsibility. When an employer delegates administration to a third-party administrator (TPA), the TPA assumes the plan administrator's 14-day sending deadline. However, the employer retains the obligation to notify the TPA within 30 days of the qualifying event. A TPA's failure to send a timely notice does not automatically immunize the employer from DOL civil enforcement under ERISA § 502 or from excise tax liability under IRC § 4980B, which sets a penalty of $100 per day per qualified beneficiary for each day of noncompliance.

Separate notice requirement vs. single-household exception. If a spouse and dependent children reside at the same address as the covered employee, one notice sent to that address satisfies the requirement for all of them. If any qualified beneficiary resides at a different address — for example, a college-age dependent — a separate notice must be sent to that address. Relying on a single notice for a family when a beneficiary has a different known address is a compliance failure.

COBRA vs. state continuation. Employers with fewer than 20 employees are not subject to federal COBRA but may be subject to state "mini-COBRA" laws, which have their own election notice requirements that differ by state. These are addressed separately under Mini-COBRA State Laws for Small Employers.

References

The law belongs to the people. Georgia v. Public.Resource.Org, 590 U.S. (2020)