Yes—in many cases, you should. If an individual expects to receive COBRA coverage, even if they were never enrolled in your plan, you are generally required to provide a COBRA Notice of Unavailability explaining why they are not eligible.
When Is a Notice of Unavailability Required?
You must send this notice when:
- A qualifying event is reported, but the individual is not entitled to COBRA, or
- A request for a COBRA extension (disability or second event) is denied
Importantly, eligibility—not enrollment—doesn’t determine whether the notice is needed. If someone reasonably expected coverage, the notice applies.
Who Should Receive the Notice?
The notice must go to the individual expecting COBRA coverage, not necessarily the person who reported the event.
Example: If an employee reports a qualifying event for their child who was never covered, the child—not the employee—should receive the notice.
What Should the Notice Include?
The notice must be:
- Written in clear, easy-to-understand language
- A specific explanation of why COBRA is unavailable
- Tailored to the individual’s situation
Include:
- The qualifying event (or request)
- The reason coverage is denied (e.g., not enrolled in the plan)
- Contact information for questions
Timing Requirements
Provide the notice within 14 days after the plan administrator receives notice of the qualifying event or request—the same deadline as a COBRA election notice.
How Should It Be Delivered?
Use a method reasonably calculated to ensure receipt.
Best practice: send via first-class mail, though hand delivery and compliant electronic delivery are also acceptable.
Key Takeaway
Even if someone isn’t covered under your plan, you must send a COBRA Notice of Unavailability if they expected coverage. Doing so within the required timeframe helps ensure compliance and reduces potential risk for your organization.
Source: Thomson Reuters