Remember to Offer COBRA and FMLA Participants the Chance to Change Elections During Open Enrollment

Many plan sponsors do not realize that all COBRA participants must be offered the same open enrollment opportunities as active health plan participants. They also need to receive copies of all open enrollment materials and notices when it comes to medical, dental, and vision coverage. It does not matter if the individual is currently enrolled in all these plan options or if an employer is introducing new coverage options for the 2025 plan year. Every COBRA participant has the same open enrollment period rights as other plan participants. Put another way, COBRA beneficiaries must be given the opportunity to switch to another plan, add other plan options, and add or eliminate coverage of family members, just like any other plan beneficiary.

Similar rules apply to any employees who may be out on protected leave as per the Family and Medical Leave Act (FMLA). During the annual open enrollment period, any employee on FMLA leave when open enrollment is offered must be given an opportunity to make employee benefit election changes, just like any other employee.