COBRA Election Notice Returned as Undeliverable

By Kristy N. Britsch

The Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) statute requires that plan administrators mail COBRA election notices to a qualified beneficiary’s last known address. Some courts have held that the COBRA requirements are met, despite the return of a COBRA election notice as undeliverable where the plan demonstrates that the mailing was properly sent to the qualified beneficiary’s last known address. If the plan can demonstrate that it sent the COBRA election notice to the qualified beneficiary’s last known address, courts are less likely to impose any additional obligation on the plan to attempt tracking down the qualified beneficiary.

If confronted with this problem, plan administrators may want to check with their insurer (if the plan is insured) or their third party administrator (“TPA”) to determine if a different address is on file. It is also a good idea for plan administrators to check with the payroll department, the human resources department, or the pension benefits administrator for a more recent address.

Plan administrators should create a written record of any “address checking” that has been done on behalf of a qualified beneficiary (e.g., a memorandum to the file) to protect against any related COBRA lawsuit. Review the plan’s summary plan description (the “SPD”), the COBRA initial notice and other standard benefits notices to make certain that such documents contain language that qualified beneficiaries must keep the plan administrator informed of any address changes.

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