COBRA Notification Letter Generator

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COBRA Notification Letter US

Dear ,

In accordance with the Consolidated Omnibus Budget Reconciliation Act (COBRA), is required to notify you of your rights to continue group health coverage following a qualifying event. This letter serves as your official COBRA notification.

The qualifying event applicable to you is: . As a result of this event, your current group health coverage through is scheduled to end on . Under COBRA, you have the right to elect continuation of your health coverage for a limited period.

To elect COBRA continuation coverage, you must complete and submit the enclosed election form on or before . This is a critical deadline, and failure to respond by this date will result in the permanent loss of your right to COBRA coverage. The monthly premium for continuation coverage is , which you will be responsible for paying in full.

Please carefully review all enclosed documentation, including the COBRA election form, plan details, and payment instructions. For questions or assistance regarding your COBRA rights and options, please contact the Human Resources department at .

Sincerely,

#1

Outcome-based. Typical recruitment agency.

Hyring
Recruiters and hiring managers using Hyring's AI-native recruitment agency

#2

AI screening & interviewing tools

Hyring
Hyring's AI video interviewer screening and scoring a candidate

#3

Employee time tracking & Productivity monitoring

Insight by Hyring
Insight team overview dashboard showing activity and presence

What Is a COBRA Notification Letter?

The COBRA notification letter is an official document issued by companies in accordance with the U.S. Consolidated Omnibus Budget Reconciliation Act to notify eligible employees and their dependents about their right to extend the group health plan coverage beyond the termination date in case of specific events such as lay-off, termination of employment, or reduction of working hours. This notification should cover the details about the health plan offered and its cost, as well as deadlines and other important information. It is issued by employers who have 20 or more employees.

Why HR Teams Send COBRA Notifications

Sending out COBRA notifications is a mandatory requirement of the law, and not complying with it may lead to serious consequences for companies, including excise taxes and lawsuits filed by affected parties. COBRA notifications make sure that employees know what they can do in cases of termination and layoff and help prevent future conflicts.

Key Elements of a COBRA Notification Letter

The letter must identify the qualifying event, the individuals eligible for continuation coverage, the available coverage options, the premium amount and who pays it, and the 60-day election period. It should explain how to enroll, the duration of COBRA coverage (typically 18 or 36 months, depending on the qualifying event), and the circumstances that would end COBRA coverage early. Contact information for the plan administrator must also be included.

How to Use Our Free COBRA Notice Letter Template Tool

Using our free tool to generate your COBRA notice letters allows you to create compliant letters in just a few minutes. Input all pertinent information regarding the qualifying event, eligible employees, plan selections, and premiums. The tool will automatically generate your letter, adhering to federal COBRA notice requirements. You can then download your letter in a PDF file format.

Frequently  Asked  Questions

What is a COBRA notice?

A COBRA notice is an obligatory document regulated by the Consolidated Omnibus Budget Reconciliation Act that provides employees and covered individuals with the ability to continue group health coverage in case of a qualifying event. A qualifying event includes termination of employment or reduction in working hours, as well as divorce or death of a covered employee. The notice should be given in a certain timeframe with the necessary details regarding the continuation of coverage.

When should the COBRA notice be sent?

In case of a qualifying event, such as termination of employment or reduced working hours, the employer should notify the administrator of a group health plan in no more than 30 days. Then the administrator is expected to provide the COBRA election notice to the qualified beneficiaries within 14 days. In case of a qualifying event, such as divorce or loss of status as a dependent, the individual should contact the administrator within 60 days.

Who is eligible for COBRA continuation coverage?

COBRA coverage is available to employees, their spouses, and dependent children who were covered under the employer's group health plan on the day before the qualifying event. The employer must have 20 or more employees to be subject to federal COBRA requirements. Individuals who were terminated for gross misconduct are generally excluded from COBRA eligibility.

How long does COBRA coverage last?

COBRA coverage generally lasts for 18 months following a qualifying event such as job loss or reduction in hours. In certain cases, such as disability, divorce, or the death of the covered employee, coverage may extend to 29 or 36 months. COBRA coverage ends early if the beneficiary fails to pay premiums on time, obtains other group health coverage, or becomes eligible for Medicare.

How much does COBRA coverage cost?

COBRA participants typically pay the full premium for their health coverage, which includes both the employee and employer share, plus an administrative fee of up to 2 percent. This means COBRA coverage is often significantly more expensive than the amount the employee paid while actively employed. Despite the higher cost, COBRA can be a valuable bridge for maintaining health insurance continuity during employment transitions.

What happens if the employer fails to send the COBRA notice?

Failure to send the COBRA notice can expose the employer to an excise tax of up to $110 per day per qualified beneficiary for each day of non-compliance. Affected individuals may also file a lawsuit to recover damages, including the cost of medical expenses that would have been covered. The Department of Labor can also take enforcement action against non-compliant employers.

Is COBRA applicable to all types of health insurance?

COBRA can be applied to group health insurance plans that provide medical, dental, and vision coverage. However, it does not apply to any other type of insurance, such as life insurance, disability insurance, and health flexible spending accounts, unless it meets certain criteria. When there are various health plans offered by an employer, the COBRA notice should notify the beneficiaries about their choice of continuing the same plan as was in effect before the qualifying event.

How does federal COBRA differ from state mini-COBRA?

While federal COBRA applies to employers who employ 20 or more employees, mini-COBRA refers to state-level laws for those employers who have fewer than 20 employees and do not qualify for federal COBRA provisions. State laws regarding mini-COBRA differ greatly from one another when it comes to eligibility criteria, coverage period, and notification procedures.

Related HR Glossary Terms

HR GlossaryCOBRA (US)HR GlossaryLayoffHR GlossaryTermination for CauseHR GlossaryHealth InsuranceHR GlossaryDisability InsuranceHR GlossaryLife Insurance

Written by

Adithyan RK

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CEO & Co-founder, Hyring

18+ years of experience

Adithyan RK is the Co-Founder and CEO of Hyring, an AI-native recruitment platform that has run over 900,000 AI interviews for companies ranging from early-stage startups to the Fortune 500. He has spent 18 years building technology businesses, starting with a digital consultancy in 2008 and a staff augmentation firm in 2017, before founding Hyring in 2022 to rebuild hiring around evidence instead of guesswork.

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AI RecruitmentAI InterviewsRecruitment AutomationHR TechnologyHiring AnalyticsApplicant TrackingRecruiter Operations

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Surya N

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CTO & Co-founder, Hyring

6+ years of experience

Surya N is the Co-Founder and CTO of Hyring, where he architected the AI interviewing engine that has now conducted over 900,000 interviews for companies ranging from early-stage startups to the Fortune 500. A mechanical engineer who moved into artificial intelligence, he spent 6 years building AI applications inside a technology consultancy before co-founding Hyring, and wrote the first version of its AI interviewer from scratch: a system that listens, adapts its questioning in real time, and flags fraud rather than following a fixed script.

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AI Interview SystemsConversational AIInterview Fraud DetectionPlatform ArchitectureMachine Learning EngineeringApplied AISpeech and Voice AIBias Testing and Model Evaluation
Published on: 25 Mar 2026Last updated: 4 Apr 2026
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