COBRA Notification

scottorr

When an employee is terminated we have been sending our employee and their spouse a COBRA notification letter in two seperate envelopes. We recently had an internal auditor tell us that we should be sending a letter to every dependent covered by our plan. Is anyone doing this? I brought up the issue of guardianship but my comments were disregarded by the auditor.

LindaS

My understanding is that the participant is to be sent the notice, obviously, and if the spouse is residing someplace other than with the participant, they need to be sent a notice as well. As far as dependents, unless you are aware they are also residing someplace other than with the parents, their notice goes with one of the above. For example, if you know that a dependent is going to college and living outside the parent's home, they would need to be sent a separate notice. This is all information that should be supplied by the employee.

LFernandes

I agree with Linda. I also address the envelopes to John Doe (EE) and Spouse and Jane Doe and Family. Also, the new proposed COBRA regs just came out in the Federal Register on May 28, 2003. I know that there are new notice requirements should the regs go final.

LFernandes

mtz

I attended a COBRA seminar and learned that is should be mailed to everyone covered under the plan. Based on what I learned, I address one envelope as follows:

John Doe and Dependents

This will suffice in a court of law according to the experts at Cobra Compliance in Coldwater Michigan. Also, you should not send it certified, or hand deliver. Use a certificate of mailing for .90 cents. This stands up in a court of law as proof of delivery to the last known address. Many people make the mistake of thinking certified is the best method but it isn't. Whoever signs for it is the person notified and if something were to happen--say an automobile accident and the person wants to sign up for Cobra but it is past the election period. Then, if it goes to court, you have not proven the previously insured individual or dependents were notified.

Hope this helps.