COBRA

A COBRA policy explains when employees and covered dependents can continue group health coverage after a qualifying event, what coverage and premium costs apply (including permitted administrative fees), and the notice, election, and payment deadlines that must be met to keep coverage in place.

How to Write a COBRA Policy

• Start with "why" and introduce the concept.
• Explain what continuation coverage is and which benefit plans it can apply to.
• Describe the events that can trigger eligibility for continuation coverage.
• Clarify that continuation coverage generally mirrors active plan options, but the individual pays the full cost plus permitted fees.
• Outline the election notice and election process at a high level.
• State the ongoing premium payment requirement and that nonpayment can end coverage.
• Point employees to plan documents and a contact for questions.
• Add a plain-language disclaimer that plan documents and applicable law control.

For advice on writing a COBRA policy in a specific jurisdiction, see below.