If a plan ends continuation coverage before the maximum period allowed, what must the plan administrator do?

• A. The admin must provide the beneficiary with a notice of early termination of continuation coverage asap and practicable after the decision to terminate the cover is made
• B. The admin must offer a new plan with the same terms
• C. The admin must extend continuation coverage for another 6 months automatically
• D. The admin must notify the beneficiary after 90 days of termination

Answer: (A)

Under COBRA, if continuation coverage is terminated before the maximum period, the plan administrator must provide the beneficiary with a notice of the early termination as soon as practicable after the decision to terminate is made. This timely notice informs the person that their COBRA coverage will end early and explains the reason, helping them understand their options and any deadlines for alternative coverage. There is no requirement to offer a new plan with the same terms, extend continuation automatically for six more months, or delay notice until a later date such as 90 days. Timely termination notices are part of the COBRA framework to ensure beneficiaries aren’t left unaware of changes to their coverage.