Explain what must be done if a plan denies a request for COBRA coverage.

• A. The plan admin must provide them with a notice of unavailability of continuation coverage within 14 days of receiving the request and this notice must explain why the request was denied
• B. The plan must automatically approve COBRA if the request is denied
• C. The employee may appeal to the SSA for reconsideration
• D. The employer must cover the cost of the request regardless of approval

Answer: (A)

When a COBRA request is denied, the plan administrator must promptly inform the requester that continuation coverage isn’t available and explain the reason for the denial. The requirement is to issue a written notice within 14 days of receiving the request, and that notice should clearly state why the request was denied. This keeps the person informed and gives them a clear basis for understanding the decision.

The notice also should guide what happens next, typically outlining the plan’s internal appeal process and how to pursue a review if the individual disagrees with the denial. This ensures there’s a path to challenge the decision within the plan before pursuing any further remedies.

So, the key idea is timely, written notice of denial that spells out the reason and directs the person to the appeals process, rather than automatic approval, involvement of the SSA, or employer obligation to cover the cost regardless of the outcome.