There are two key words to keep in mind when you're dealing with COBRA:  Procedures and Documentation.   With good procedures and documentation, any COBRA situation you may run across should be easy to solve.  Without good procedures and documentation, well, that could be a very expensive problem.

Let's take the COBRA Initial/General Notice.  COBRA requires that the employee and spouse be given a general notice within the first 90 days after becoming covered under a group health plan.  While group health plan summary plan descriptions (SPD) include the basic COBRA notice, just handing the SPD to the employee doesn't satisfy the documentation requirement.  

You have a record that the employee was given a copy of the SPD which includes the COBRA notice.  But how do you prove that the spouse received a copy?    You may not even know the employee is married when you hand out the SPD, much less that the employee will be enrolling their spouse on your group health plan.  

We suggest that you mail the COBRA general notice to the home address of the employee addressed to the employee "and covered dependents."    If you know that the spouse has a separate mailing address, mail the notice to the spouse directly.  And keep proof of what you mailed and when you mailed it.  The best way to document that a notice has been mailed is by sending it by first class mail and obtaining and keeping a certificate of mailing. proof that the letter was sent.

If the employee gets married and adds their new spouse to their health plan?  Send the notice again and, again, send it first class mail by certificate of mailing.

Keeping accurate records of your COBRA notices can save you money, time and stress in the long run.

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