Massachusetts Health & Accident Insurance Practice Exam

What must employers provide to inform employees of COBRA continuation privileges?

1. Oral notifications

2. Written notification

3. Text message notifications

4. Email notifications

The correct answer is: Written notification

Employers are required to provide written notification to inform employees of their COBRA continuation privileges. This requirement ensures that employees have a clear and formal record of their rights under the Consolidated Omnibus Budget Reconciliation Act (COBRA), which allows them to continue their health insurance coverage after certain qualifying events, such as job loss or reduction in hours. Written notifications provide essential information about the benefits available, the circumstances under which coverage may be continued, and the procedures for electing COBRA coverage. This documentation is crucial as it serves as legal proof that employees were informed of their rights, eliminating ambiguity that could arise from oral communication or less formal methods such as text messages or emails. It's specifically designed to ensure that recipients fully understand their options and the steps they need to take, which is fundamental in protecting their health insurance rights.