COBRA Letter Generator for HR Teams
Automated COBRA notice generator creates all DOL-compliant letters in 2 minutes.
Free: 2025 COBRA Compliance Report
Everything HR needs to ensure COBRA compliance in one comprehensive guide.
- 50-Point DOL Audit Checklist
- Official DOL Sample Letters & Templates
- Complete DOL FAQ for Employers
- Penalty Avoidance Strategies
- 2025 Regulation Updates
- Timeline & Deadline Calculator
"This report saved us during our DOL audit. Having all the requirements in one place was invaluable."
- Sarah Chen, HR Director
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Understanding COBRA Compliance
What is COBRA?
The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires employers with 20+ employees to offer continued health coverage to employees and dependents who lose coverage due to specific qualifying events. This federal law, enforced by the Department of Labor (DOL), carries significant penalties for non-compliance.
Who Must Comply?
- Federal COBRA: Private employers with 20+ employees on 50% of business days
- Exemptions: Churches, federal government (has separate rules)
Critical COBRA Deadlines You Cannot Miss
| Notice Type | Deadline | Penalty for Missing |
|---|---|---|
| General Notice | 90 days from coverage start | $110/day per person |
| Election Notice | 14 days from qualifying event | $110/day + lawsuits |
| Qualifying Event Notice | 30 days from event | $100/day IRS penalty |
⚠️ Real Example: Why This Matters
In 2024, a tech company with 75 employees was fined $47,300 for sending COBRA notices 45 days late to 12 terminated employees. The HR director was also found personally liable. This could have been avoided with proper compliance tools.
Common COBRA Compliance Mistakes
$110/Day Penalties
Missing a 14-day deadline triggers automatic DOL penalties that compound daily.
Complex Deadlines
Multiple notice types, each with different deadlines and content requirements.
Changing Regulations
Federal requirements change frequently, making templates outdated.
Personal Liability
HR managers can be held personally liable for COBRA compliance failures.
COBRA Qualifying Events: A Complete Guide
Understanding qualifying events is crucial for COBRA compliance. Each event triggers specific notice requirements and coverage periods.
18-Month Coverage Events
- Termination of employment (other than gross misconduct)
- Reduction in hours making employee ineligible
- Leave of absence (FMLA, military, etc.)
- Strike or lockout
- Employer bankruptcy (retirees only)
36-Month Coverage Events
- Death of covered employee
- Divorce or legal separation
- Employee becomes entitled to Medicare
- Dependent child loses eligibility status
- Loss of coverage due to employer bankruptcy
💡 Pro Tip: Second Qualifying Events
If a second qualifying event occurs during the initial 18-month period (like divorce or death), coverage can be extended to 36 months total. This requires additional notices within 60 days.
Frequently Asked COBRA Questions
Q: How much can employers charge for COBRA coverage?
Employers can charge up to 102% of the total premium cost (employee + employer portion). For disability extensions (months 19-29), this increases to 150%. The 2% covers administrative costs.
Q: What happens if we miss the 14-day election notice deadline?
Missing this deadline triggers immediate DOL penalties of $110 per day per affected person. Additionally, you may face IRS excise taxes, ERISA lawsuits, and must provide coverage retroactively at your expense. The average penalty for a single late notice is $4,950.
Q: Do we need to offer COBRA for dental and vision plans?
Yes, COBRA applies to all group health plans including medical, dental, vision, FSAs, and HRAs. Each must be offered separately so participants can choose which coverages to continue.
Q: Can employees on COBRA switch plans during open enrollment?
Yes, COBRA participants have the same rights as active employees during open enrollment. They can change plans, add/drop dependents, and make any changes available to active employees.
The #1 COBRA Letter Generator for HR Teams
Our automated COBRA notice generator creates all required DOL-compliant letters in minutes, not hours.
COBRA Letter Types
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Your Complete COBRA Solution
📄 COBRA Forms Library
Access all 6 required COBRA form types. Generate unlimited custom forms specific to your company and plan details.
Explore Forms →✉️ COBRA Letter Generator
Automated COBRA letter generator creates compliant notices in 2 minutes. Never miss the critical 14-day deadline again.
Generate Letters →🛡️ Compliance Center
Stay audit-ready with our compliance tracking, deadline management, and documentation system.
Ensure Compliance →📊 Election Management
Track who elected COBRA, manage coverage periods, and monitor enrollment status in one place.
Learn More →📋 Full Compliance
Complete federal COBRA compliance with all DOL requirements and deadlines tracked automatically.
Learn More →📈 Audit Trail
Complete documentation history for DOL audits. Know exactly what was sent, when, and to whom.
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"We had a reduction in force affecting 47 employees. Using HRMax, I generated all COBRA notices in under 2 hours. The DOL audit went smoothly because everything was perfectly documented."
Jennifer Martinez
HR Director, TechCorp
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