COBRA election letter deadline?

[MD-Benefits Guy]

Employee is terminated on 11/1.  Group Health benefits terminate at the end of the month (11/30).  Employer uses a third-party administrator for COBRA and sends termination information over to COBRA administrator on 11/14.  What is the deadline for the third-party administrator to send out the COBRA election notice - 11/29 (14 days from notice) or 12/14 (14 days after benefits termination) or some other date?

I believe COBRA rules state that employers have 30 days to provide notice to plan administrator and 14 days for the plan admin to send election notices.

Employers only get 44 days to send notices if they send out their own COBRA letters directly, correct?

 

TIA

[Brian Gilmore]

For a single employer plan where the employer plan sponsor is the ERISA §3(16) plan "administrator" (essentially all single employer plans), the DOL enforces the 30/14 day rules as a combined 44-day limit.  The COBRA TPA is not the ERISA "administrator"--they are just being delegated COBRA administrative responsibilities by the employer.  So having a COBRA TPA doesn't change the timing approach here.

Here's the cite:

29 CFR §2590.606-4(b):

(2)   In the case of a plan with respect to which an employer of a covered employee is also the administrator of the plan, except as provided in paragraph (b)(3) of this section, if the employer is otherwise required to furnish a notice of a qualifying event to an administrator pursuant to §2590.606-2, the administrator shall furnish to each qualified beneficiary a notice meeting the requirements of paragraph (b)(4) of this section not later than 44 days after:

(i)   In the case of a plan that provides, with respect to the qualifying event, that continuation coverage and the applicable period for providing notice under section 606(a)(2) of the Act shall commence with the date of loss of coverage, the date on which a qualified beneficiary loses coverage under the plan due to the qualifying event; or

(ii)   In all other cases, the date on which the qualifying event occurred.

 

Here's a slide summary:

2024 Newfront COBRA for Employers Guide