QUESTION: We acquired discover from an worker that his son turned age 26 and is now not an eligible dependent below our firm’s group well being plan. In line with our insurer, nevertheless, the son isn’t coated below the plan as a result of his protection was beforehand dropped throughout open enrollment. Will we nonetheless must ship a discover of unavailability informing the worker’s son that he’s not entitled to elect COBRA?

ANSWER: Sure. The DOL’s COBRA laws require a plan administrator to supply a discover of unavailability to sure people who could anticipate to obtain COBRA protection (or an extension of COBRA protection). The discover is required for any coated worker, certified beneficiary, or “different particular person” for whom the administrator has acquired any of the next notices and has decided that COBRA protection (or an extension of COBRA protection) isn’t out there: (1) discover {that a} qualifying occasion has occurred; (2) discover {that a} second qualifying occasion has occurred; or (3) discover {that a} certified beneficiary has been decided by the Social Safety Administration to be disabled.

Though the worker’s son is now not coated below your plan, the discover out of your worker that his son has ceased to be a dependent below the plan is a discover of a qualifying occasion. Moreover, though your worker’s son isn’t a COBRA certified beneficiary (as a result of he was not coated by the plan when he misplaced eligibility), he’s nonetheless an “different particular person” to whom you need to present a discover of unavailability.

The discover have to be written in a fashion calculated to be understood by the typical plan participant and should clarify why the person isn’t entitled to COBRA (or an extension of COBRA). It have to be furnished by the deadline that will in any other case apply for offering a COBRA election discover—typically 14 days after the plan administrator receives discover of a qualifying occasion, second qualifying occasion, or incapacity. The person entitled to obtain a discover of unavailability is the one that was anticipating to obtain COBRA (or an extension of COBRA). This is not going to essentially be the one that offered discover to the plan administrator. On this case, your worker’s son ought to obtain the discover. Like different COBRA-required notices, a discover of unavailability have to be furnished utilizing measures moderately calculated to make sure precise receipt of the fabric. Whereas DOL-approved strategies embody mail, hand-delivery, and digital transmission, we advocate utilizing first-class mail. For extra data, see EBIA’s COBRA guide at Part XVIII.M (“Discover of Unavailability of COBRA Protection”).

Contributing Editors: EBIA Employees.