COBRA Notice of Early Termination of Continuation Coverage
Continuation coverage must generally be available for up to 18, 29, or 36 months. However, the group
health plan may terminate continuation coverage early, for specific reasons. (See “Duration of Continuation
Coverage” on page 9.)
When a
group health plan decides to terminate continuation coverage early, the plan must give the qualified
beneficiary a notice of early termination. The notice must be given as soon as practicable after the decision
is made, and it must include the date coverage will terminate, the reason for termination, and any rights the
beneficiary may have under the plan or applicable law to elect alternative group or individual coverage.
Special Rules for Multiemployer Plans
Multiemployer plans are allowed to adopt some special rules for COBRA notices, such as setting its
own time limits for the qualifying event notice or the election notice. A multiemployer plan also may
choose not to require employers to provide qualifying event notices, as the plan administrator will
determine when a qualifying event has occurred. Any special multiemployer plan rules must be set out
in the plan’s documents and SPD.
Election Procedures
Your plan must give you at least 60 days to choose whether or not to elect COBRA coverage, beginning
from the date the election notice is provided or the date you would otherwise lose health coverage due to
the qualifying event, whichever is later.
Each qualified beneficiary has an independent right to elect continuation coverage. This means that if
both you and your spouse are entitled to elect continuation coverage, you each can make a different
choice. The plan must allow you or your spouse to elect continuation coverage on behalf of all of the
other qualified beneficiaries for the same qualifying event, if the election does not specify it is for self-
only coverage. A parent or legal guardian of a qualified beneficiary must also be allowed to elect on
behalf of a minor child.
If you waive continuation coverage during the election period, you must be permitted to later revoke your
coverage waiver and elect continuation coverage, as long as you do so before the election period ends. In
such cases, continuation coverage may begin on the date you revoked the waiver.
Certain Trade Adjustment Assistance (TAA) Program participants have a second opportunity to elect
COBRA continuation coverage:
•
Individuals who are eligible and receive Trade Readjustment Allowances,
•
Individuals who would be eligible to receive Trade Readjustment Allowances but have not yet
exhausted their unemployment insurance benets, and
•
Individuals who are receiving benets under Alternative Trade Adjustment Assistance or
Reemployment Trade Adjustment Assistance and did not elect COBRA during the general
election period.
This second election period begins 60 days from the first day of the month in which an individual is
determined eligible for the TAA benefits listed above and receives such benefits.
For example, if you are eligible and your general election period runs out at the beginning of the month,
you would have approximately 60 more days to elect COBRA. But if you meet the eligibility criteria
at the end of the month, the 60 days began on the first of the month, in effect giving you about 30 days.
UNITED STATES DEPARTMENT OF LABOR
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