COBRA & Benefits Hand-off Packet Builder
One of the first questions employees ask after a layoff is: “What happens to my benefits?” This builder assembles a clean, employee-facing packet with a cover letter, plan summaries (medical/dental/vision, HSA/FSA, life/disability), key dates, contacts, and any employer subsidy.
The result is a plain-language PDF you can email or print—giving employees clarity when they need it most.
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COBRA & Benefits Hand-off Packet Builder: Giving Employees Clarity After Layoffs
One of the most stressful parts of a layoff for employees is figuring out what happens to their health insurance and other benefits. Questions about COBRA, FSAs, HSAs, life insurance, and disability coverage can feel overwhelming—especially at a time when emotions are already running high.
For HR teams, that’s where a COBRA & Benefits Hand-off Packet Builder comes in. Instead of scrambling to draft cover letters and attach carrier PDFs, you enter your plans (medical, dental, vision, HSA/FSA, life, disability), add key dates, carrier contacts, and note any employer subsidies.
The tool then generates a clean, plain-language cover letter, plan summaries, and a contact sheet—ready to email or print as a complete packet.
The result? Employees leave with clarity, not confusion.
Why Benefits Hand-off Packets Matter
For many employees, health coverage is the number-one concern after a job loss.
Without clear information, they may miss deadlines, lose eligibility, or make costly mistakes. For employers, this creates reputational risk and potential compliance issues.
A good packet ensures employees know:
When coverage ends.
How COBRA works and how to elect coverage.
What it will cost (with or without subsidy).
Which carriers to contact with questions.
Alternative options like Marketplace plans.
Key takeaway: Benefits hand-off packets provide peace of mind and reduce HR’s workload by answering common questions upfront.
COBRA Insurance: What It Is and How It Works
The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows employees and dependents to continue employer-sponsored health coverage for a limited time after termination.
Key facts:
Eligibility: Applies to employers with 20+ employees. Covers medical, dental, vision, and sometimes FSAs.
Length: Typically 18 months, with extensions in some cases.
Cost: Employees pay the full premium (employer + employee share), plus up to a 2% admin fee.
Election period: Employees have 60 days from receipt of the COBRA notice to elect coverage.
Key takeaway: COBRA provides continuity, but costs can be high—clear communication is critical.
How Much Does COBRA Cost?
On average, COBRA premiums are significantly higher than active employee contributions, since the employer is no longer subsidizing most of the cost.
According to Kaiser Family Foundation, in 2023 the average annual premium for employer-sponsored family coverage was $23,968 (roughly $1,997 per month). Under COBRA, employees may be responsible for the full amount plus a 2% administrative fee.
Key takeaway: Cost surprises are a major source of stress—packets should spell out monthly COBRA premiums clearly.
COBRA vs. Marketplace Insurance
Employees often ask whether they should take COBRA or shop the Affordable Care Act (ACA) Marketplace. The answer depends on their situation:
COBRA advantages: Keep existing doctors and networks, avoid coverage gaps, simple transition.
Marketplace advantages: Often lower cost (especially with subsidies), wide plan selection, potential for lower deductibles.
Key takeaway: Employees need to know both options—packets should explain COBRA and highlight Marketplace as an alternative.
What to Include in a Benefits Hand-off Packet
When an employee departs, one of the most stressful points is figuring out what happens to their benefits. A clear, well-organized hand-off packet ensures they have everything they need without confusion. Whether you build it manually or use a generator, here are the core components:
Cover Letter
A short, plain-language explanation of what’s changing and why.
Tone should be empathetic and neutral—acknowledge the transition without legal jargon.
Call out key dates up front such as the last day of active coverage and COBRA election deadlines.
If the employer is offering to subsidize COBRA or other coverage, highlight it clearly.
Plan Summaries
Provide a concise, high-level overview of each benefit: medical, dental, vision, HSA/FSA, life insurance, disability coverage.
Avoid overwhelming employees with the full Summary Plan Documents (SPDs). Instead, summarize the essentials: coverage type, continuation options, and what changes.
Include a note directing them where to find full SPDs if they want more details.
Costs
Outline the monthly COBRA premiums for each plan option, with or without employer subsidy.
Make the math clear—employees should be able to quickly see the cost per month for continuing each type of coverage.
If subsidies are temporary (e.g., 3 months of employer-paid premiums), specify start and end dates.
Contacts Page
List carrier phone numbers, websites, and support lines for quick access.
Provide an internal HR or benefits team contact who can answer questions directly.
If using a third-party COBRA administrator, include their dedicated hotline and email.
COBRA Election Instructions
Step-by-step instructions on how to elect COBRA, including where to log in, which forms to complete, and how to submit them.
Reinforce deadlines (typically 60 days from coverage end date).
Provide sample screenshots or form links when possible.
Key Takeaway: The goal is clarity. Employees should be able to skim the packet in under 10 minutes and know exactly what actions to take, by when, and who to call for help.
How the COBRA & Benefits Hand-off Packet Builder Works
To simplify this process, HR professionals often use an automated generator. Here’s how it functions in practice:
Input Plan Details
Enter core plan information: medical, dental, vision, HSA/FSA, life, and disability benefits.
Specify coverage end dates and COBRA election deadlines.
Add Key Information
Upload carrier contact info and support resources.
Include subsidy details if the company is covering part of the cost.
Generate Packet
The tool creates a branded, plain-language cover letter tailored to the employee’s situation.
It automatically produces plan summaries, premium tables, and a contact sheet.
All sections are formatted for clarity—no dense legal language or unnecessary filler.
Export Options
Generate a ready-to-send PDF that can be emailed or printed.
Export editable text files for HR teams who want to customize further.
Key Takeaway: By automating packet creation, HR teams reduce manual effort, cut down on errors, and ensure every employee gets consistent, accurate information during a stressful time. Employees benefit from a clear, empathetic guide; HR benefits from saved time and reduced risk.
Outplacement and Benefits Communication
Benefits information is often paired with outplacement services to provide a complete support package.
At TurboTransitions, for example, laid-off employees not only get access to AI-driven coaching tools (via PruE AI) and human career coaching, but also clear information about COBRA, Marketplace options, and next steps. Together, this combination reduces anxiety and shows employees they’re being cared for.
Key takeaway: Pairing benefits clarity with career transition support demonstrates both compliance and compassion.
“The function of leadership is to produce more leaders, not more followers.”
— Ralph Nader, Political Activist & Author
FAQ: COBRA and Benefits Hand-off
What is COBRA and how does it work after a layoff?
COBRA (Consolidated Omnibus Budget Reconciliation Act) is a federal law that gives employees and their families the right to keep their employer-sponsored health insurance after losing a job or experiencing another qualifying event (such as a reduction in hours). Coverage can generally continue for up to 18 months, though certain situations may extend it to 29 or 36 months.
To activate COBRA, the employer (or plan administrator) will send a COBRA election notice, and the employee must choose to enroll and pay the required premiums. COBRA ensures continuity of care—employees can keep the same doctors, prescriptions, and health networks they had while employed.
How long do I have to elect COBRA coverage?
You have 60 days from either the date you receive the COBRA election notice or the date your coverage ends (whichever is later). If you do not take action within that period, you lose the right to continue your employer-sponsored plan.
Importantly, COBRA coverage is retroactive—meaning if you elect within the 60-day window and pay the premiums, coverage is reinstated back to the day after your employer plan ended, preventing any gaps.
How much does COBRA cost per month?
Because employers are no longer subsidizing the cost, COBRA can feel expensive. On average, individuals pay around $600 per month, while family coverage averages about $1,997 per month, though these numbers vary by employer plan and region.
Employees are responsible for paying the full premium plus up to a 2% administrative fee. For example, if your employer previously covered 75% of your premium, you’ll notice a substantial jump when you pay the entire cost.
Does severance include COBRA subsidy?
It depends. Some severance agreements include a COBRA subsidy where the employer pays part (or all) of the COBRA premiums for a set number of months, making it more affordable.
This can be a valuable benefit, so it’s important to review your severance agreement closely and ask HR for clarification. If no subsidy is offered, you’ll need to decide whether to pay the full COBRA premium or explore alternatives like Marketplace insurance.
COBRA vs. Marketplace—what’s better?
Both options have trade-offs:
COBRA is best if you want continuity of care and your existing doctors, prescriptions, and treatments. It’s particularly useful if you are in the middle of a course of treatment or have complex medical needs.
Marketplace plans (via Healthcare.gov or state exchanges) are often cheaper, especially if you qualify for income-based subsidies. However, the networks may be different—meaning you could have to switch doctors or medications.
The right choice depends on your health needs, budget, and whether you qualify for Marketplace subsidies. Many families compare both before deciding.
What should a COBRA/benefits handoff packet include?
A strong benefits handoff packet should be clear, complete, and actionable. It typically includes:
A cover letter explaining the situation in plain language.
Plan summaries of available benefits.
Premium costs (individual vs. family) with clear payment instructions.
Election instructions and deadlines (including the 60-day rule).
Carrier contact information for further questions.
Any information on employer subsidies (if applicable).
Providing all of this upfront minimizes confusion and helps employees make timely decisions.
When does health insurance end after termination?
For most employers, health insurance coverage ends on the last day of the month in which your employment ends. For example, if your last day of work is July 12, your insurance would typically continue until July 31. However, policies vary—some employers end coverage on the exact day employment ends. Always confirm with HR so you know your exact end date.
Who is eligible for COBRA?
Eligibility typically includes:
Employees who were enrolled in the employer’s group health plan when employment ended.
Spouses and dependent children who were covered at the time of termination.
Employers must have 20 or more employees for COBRA to apply under federal law (though some states extend similar rights to smaller employers through “mini-COBRA” laws).
How do I write a COBRA notification cover letter?
Employers (or plan administrators) must send a COBRA election notice within 14 days of the qualifying event. A good cover letter should be plain-language and direct, including:
The date coverage ends.
The deadline to elect COBRA (60 days).
The cost of coverage, including premiums and fees.
Step-by-step election instructions.
Contact information for questions.
The goal is to remove confusion so employees understand their options and take timely action.
Wrapping Up
When employees lose their jobs, health insurance and benefits are often their top concern. A COBRA & Benefits Hand-off Packet Builder makes it easy for HR to provide clear, consistent, and branded communication about what happens next.
By generating a cover letter, plan summaries, costs, and contacts all in one place, you remove confusion and build trust at a difficult time. Exportable PDFs mean you can deliver packets quickly and professionally, whether for one employee or hundreds.
And when paired with outplacement services like TurboTransitions, your employees don’t just get clarity on benefits—they also get support for their next career move.
Key takeaway: Benefits hand-off packets reduce stress, protect compliance, and give employees confidence during transitions.
Disclaimer
Disclaimer. These tools and their outputs are for informational purposes only and are not legal, compliance, financial, tax, or HR advice; using them does not create an attorney–client or advisory relationship. Laws vary and change—always review results with your legal, benefits, and HR advisors before acting.
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