COBRA Notification Letter Generator

Max 4 MB | PNG, JPG

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,

What Is a COBRA Notification Letter?

A COBRA notification letter is a legally mandated communication under the United States Consolidated Omnibus Budget Reconciliation Act that informs eligible employees and their dependents of their right to continue group health insurance coverage after a qualifying event such as termination, layoff, or reduction in hours. The notice must explain coverage options, costs, enrollment deadlines, and the duration of continued coverage. Employers with 20 or more employees are required to provide this notification.

Why HR Teams Issue COBRA Notification Letters

Issuing COBRA notifications is a federal compliance requirement, and failure to do so can result in significant penalties including excise taxes and exposure to lawsuits from affected individuals. The notification ensures employees and their dependents are aware of their rights to continue health coverage during a vulnerable transition period. Proper and timely issuance protects the employer from claims of non-compliance and potential litigation.

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 This Free COBRA Notification Letter Generator

Hyring's free COBRA notification letter generator helps HR teams produce compliant, comprehensive notices in minutes. Enter the qualifying event details, eligible individuals, coverage options, and premium information, and the tool generates a letter that follows federal notification requirements. Download the letter as a PDF for mailing to the qualifying beneficiaries within the required 14-day employer notification window.

Frequently Asked Questions

What is a COBRA notification letter?

A COBRA notification letter is a federally required notice under the Consolidated Omnibus Budget Reconciliation Act that informs employees and their covered dependents of their right to continue group health insurance after a qualifying event. Qualifying events include job loss, reduction in hours, divorce, or the death of the covered employee. The notice must be provided within specific timeframes and include detailed information about coverage options, costs, and enrollment deadlines.

When must the COBRA notification be sent?

The employer must notify the group health plan administrator within 30 days of a qualifying event such as termination or reduction in hours. The plan administrator then has 14 days to send the COBRA election notice to the qualified beneficiaries. For qualifying events such as divorce or a dependent aging out of coverage, the employee or dependent must notify the plan 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.

Does COBRA apply to all types of health benefits?

COBRA applies to group health plans covering medical, dental, and vision benefits. It does not apply to life insurance, disability insurance, or health flexible spending accounts unless the FSA meets specific requirements. If the employer offers multiple health plan options, the COBRA notice should inform beneficiaries of their right to continue coverage under the plan they were enrolled in at the time of the qualifying event.

What is the difference between federal COBRA and state mini-COBRA?

Federal COBRA applies to employers with 20 or more employees, while state mini-COBRA laws extend similar continuation rights to employees of smaller employers not covered by federal COBRA. State laws vary significantly in terms of eligibility, coverage duration, and notification requirements. HR teams should verify both federal and state COBRA obligations to ensure full compliance.

Written by Adithyan RK

Fact Checked by Surya N

Published on: 3 Mar 2026|Last updated:

Share now: