Understanding COBRA Timelines: Deadlines Every Employer Must Meet

If you're an employer offering health insurance, it's important to know about COBRA and what you need to do when an employee loses their coverage. COBRA (short for the Consolidated Omnibus Budget Reconciliation Act) lets employees and their families keep their group health coverage for a limited time after losing it. Maybe someone quits, gets laid off, or their hours get reduced — COBRA gives them a way to stay covered. But as an employer, there are strict timelines you need to follow. Missing a deadline could cause problems for both you and your employee.

First things first, as soon as a qualifying event happens — such as job loss or a reduction in work hours — you have 30 days to send a notice to your plan administrator. If you handle this part yourself, that means you have to start the process within a month. This is where staying organized helps. Many employers use services like employeebenefitscompanies.com to help with their COBRA needs.

Once the plan administrator is informed, they have 14 days to send a COBRA Election Notice to the former employee. This document explains their rights and how to keep their coverage if they choose to do so. Timing here matters — late delivery can result in penalties or complaints.

Once your ex-employee receives their Election Notice, they have 60 days to decide whether they want to continue their health coverage under COBRA. If they choose to go ahead, they have another 45 days to pay the first premium. So from start to finish, the process has a lot of moving parts with several deadlines built in.

Keep in mind, COBRA coverage can last up to 18 months in most cases, and sometimes even longer depending on the situation. But the part you as the employer are responsible for happens early and fast.

Staying on schedule not only helps your former employees but also keeps you in good graces legally. Employers fined for missing COBRA deadlines can end up paying quite a bit in penalties — something no one wants.

In short, knowing the key COBRA timelines and sticking to them is the best way to stay on track. Keep good records, respond quickly to status changes, and when needed, get help so nothing falls through the cracks.