Compliance with federal COBRA notice requirements is one of the most important administrative responsibilities for employers sponsoring group health plans. The Department of Labor enforces strict timelines for when COBRA notices must be provided, and failure to meet those deadlines can result in penalties, participant claims, and audit findings.
Understanding how COBRA timelines work, and how mailing practices factor into compliance, is essential for both employers and qualified beneficiaries.
COBRA Notice Timing Requirements
Federal COBRA rules impose specific notice deadlines, including:
- General (Initial) COBRA Notice
Must be provided to covered employees and spouses within 90 days of coverage under the group health plan. - Qualifying Event Notice to the Plan Administrator Employees or qualified beneficiaries generally have up to 60 days to notify the plan of certain qualifying events, such as divorce or loss of dependent status.
- COBRA Election Notice Once the plan administrator (or third party COBRA administrator) is notified of a qualifying event, the COBRA Election Notice must be provided within 14 days.
These timelines are strictly applied. Regulators and courts focus on whether notices were sent on time using reasonable delivery methods, not whether a participant recalls receiving them.
Election and Payment Deadlines for COBRA Continuants
COBRA obligations do not end once the Election Notice is sent. Qualified beneficiaries who elect COBRA coverage are also subject to specific election and payment timelines, including:
- Election Period Qualified beneficiaries generally have 60 days from the later of the COBRA Election Notice date or the loss of coverage date to elect COBRA coverage.
- Initial Premium Payment After electing COBRA, the first premium payment is generally due within 45 days of the election date.
- Ongoing Premium Payments Subsequent monthly premiums are typically due on the first day of each coverage month, subject to a 30-day grace period.
Failure by a COBRA continuant to meet election or payment deadlines can result in loss of COBRA coverage.
Mailing Matters: Recent USPS Clarifications
Recent guidance from the U.S. Postal Service highlights important considerations for COBRA notice delivery and timing.
The Postal Service has clarified that postmarks are generally applied by automated equipment at processing facilities and may not reflect the date a mailpiece was dropped off in a mailbox or collected by a carrier. Due to transportation timing, a mailpiece deposited in a mailbox may not receive a postmark reflecting the same date it was mailed.
As a result, simply placing a COBRA notice in a mailbox may not, by itself, provide sufficient documentation to demonstrate the date on which the notice was mailed or accepted by the Postal Service. The USPS has also clarified that postmarks are not intended to serve as proof of mailing for legal or compliance purposes.
Continuants who are electing or paying for COBRA coverage should consider going to the post office counter to request a hand-stamped postmark or should buy postage at the counter so the postmark shows the drop off date.
Employers and plan administrators that require documentation of mailing dates may wish to use services such as Proof of Mailing, Certified Mail, or Registered Mail, or other methods that create a verifiable record of when the Postal Service accepted the mailpiece.
Why Proof of Mailing Is Important for COBRA Compliance
In a COBRA audit or dispute, employers are typically required to demonstrate that notices were sent in a timely manner using delivery methods reasonably calculated to reach qualified beneficiaries. While actual receipt is not required, the ability to show when and how notices were mailed is often critical.
Without reliable proof of mailing, employers may face increased compliance risk if a participant challenges the timeliness of a COBRA notice.
How Cobra Control Services (“CCS”) Supports COBRA Compliance
As part of its COBRA administration services, BAS’ Cobra Control Services, LLC (“CCS”) collects and retains proof of mailing for COBRA Qualifying Event Notices. This documentation helps support the timing of the COBRA QEL and assists employers in demonstrating compliance with COBRA requirements.
By maintaining records of notice mailings, CCS helps employers strengthen their compliance posture and respond more confidently to audits, participant inquiries, and regulatory reviews.
Final Reminder
COBRA compliance depends on meeting strict notice, election, and payment timelines and maintaining appropriate documentation. Understanding how mailing practices work and ensuring that notices are sent using methods that support compliance can help reduce risk and protect both employers and qualified beneficiaries.
If you have questions about COBRA timelines, notice delivery, or COBRA administration practices, the CCS COBRA team is available to assist.
Benefit Allocation Systems (BAS) provides best-in-class, online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.
MyEnroll360 can Integrate with any insurance carrier for enrollment eligibility management (e.g., Blue Cross, Blue Shield, Aetna, United Health Care, Kaiser, CIGNA and many others), and integrate with any payroll system for enrollment deduction management (e.g., Workday, ADP, Paylocity, PayCor, UKG, and many others).
This article is for informational purposes only and is not intended as legal, tax, or benefits advice. Readers should not rely on this information for taking (or not taking) any action relating to employment, compliance, or benefits. Always consult with a qualified professional before making decisions based on this content.
