373 / What notice of COBRA continuation coverage is required?

ERISA requires group health plans to give covered employees an SPD within 90 days after the employee first becomes a participant in a plan (or within 120 days after the plan is first subject to the reporting and disclosure provisions of ERISA). In addition, if there are material changes to the plan, the plan must give employees a summary of material modifications (SMM) not later than 210 days after the end of the plan year in which the changes become effective. If the change is a material reduction in covered services or benefits, the SMM must be furnished not later than 60 days after the reduction is adopted. A participant or beneficiary covered under the plan may request a copy of the SPD and any SMMs (as well as any other plan documents), which must be provided within 30 days of a written request.

Within the first 90 days of coverage, group health plans must give each employee and each spouse who becomes covered under the plan a general notice describing COBRA rights.²

Notice to Plan Administrator. An employer must notify a plan administrator within 30 days of the date when any of the following qualifying events occur:

(1) the death of a covered employee;

(2) the termination or reduction in hours of employment of a covered employee;

(3) a covered employee’s becoming entitled to Medicare benefits; or

(4) a proceeding in a case under federal bankruptcy law.³