What are the broad categories of employer obligations under COBRA?

• A. Notice requirement and coverage requirements.
• B. Employee recruitment and retention.
• C. Tax reporting and audits.
• D. Benefit design and pricing.

Answer: (A)

Employer duties under COBRA fall into two broad areas: notice obligations to inform qualified beneficiaries of their rights, and coverage obligations to provide and administer the continuation coverage when they elect.

Notice obligations include giving a general COBRA rights notice to employees and their dependents, and providing election notices when a qualifying event occurs. These notices ensure individuals know they can elect COBRA and understand what to do, along with any deadlines and what the coverage will cost.

Coverage obligations require that once someone elects COBRA, the plan must offer continuation coverage on the same terms as active coverage for the applicable period, with the appropriate premium. The plan also handles the administration of this coverage, including any permitted extensions in qualifying situations.

These two areas—informing beneficiaries and delivering/managing the continuation coverage—best describe the employer’s COBRA responsibilities. The other options relate to HR practices, tax work, or benefit design, which are not the central COBRA obligations.