COBRA Coverage Cancelled Without Proper Notice
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Reviewed & verified by A. Jason Velez, Esq.*
Managing Attorney, 1LAW · Last reviewed January 29, 2026
Legal Inquiry
Consumer Legal Issue
PayChex administered COBRA insurance to me and then cancelled it without notifying me and while I was still making payments.
They allegedly sent notices but only via email to an email that does not belong to me. Yes I reached out to them for my refund which they have delayed.
Attorney Answer
Sending cancellation notice only to an email address that isn't yours is not effective notice, so cancelling your coverage while you were still making payments was very likely improper. Under United States Code § 1166, a group health plan must give proper written notice to the qualified beneficiary of continuation-coverage rights and changes affecting that coverage; notice delivered solely to an address that doesn't belong to you generally doesn't satisfy that.
It isn't yet clear which law governs your continuation coverage, though. Federal COBRA only covers employers with 20 or more employees; if your former employer is smaller, a separate state continuation-coverage law may apply instead, with its own notice and continuation rules. Confirm your employer's size before assuming which law controls, since the procedural protections differ.
If your coverage was administered through an ERISA-governed employee benefit plan, there is typically a limited window to file a formal written claim or appeal with the plan administrator before you can sue over the improper cancellation or delayed refund. Relying only on informal back-and-forth risks losing that window.
What you can do:
1. Confirm your former employer's size to determine whether federal COBRA or a state continuation-coverage law applies.
2. Put your refund demand in writing to the plan administrator, citing the improper notice and your continued payments.
3. If the plan is ERISA-governed, file a formal written claim or appeal rather than relying on phone calls or informal requests.
4. Keep copies of all payment records and any notices, including the one sent to the wrong email.
⏱ Time limits apply. If this is an ERISA-governed plan, formal appeals over the improper cancellation and refund are typically subject to a limited administrative window, often measured in months — have a local attorney review your case promptly to confirm the exact deadline that applies and file a written claim rather than relying on informal contact with the administrator alone.
Relevant Case Law
Terry McDowell Individually and in His Capacity as of the Last Will of Sharon Sidovar v. John Raymond Krawchison Winton Road Chiropractic Center, Inc., 125 F.3d 954 (1997) — Court of Appeals for the Sixth Circuit
If the administrator fails to provide that notice [of triggering of COBRA rights] to the qualified beneficiary, it may be bound to provide coverage to her.
If a plan administrator fails to give proper COBRA notice, it may be required to provide the coverage anyway — support for challenging your cancellation, not a guaranteed result.
Read the full opinion (CourtListener)
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Frequently Asked Questions
Is COBRA cancellation notice sent to the wrong email address valid?
Generally, notice of a change affecting continuation coverage must be effectively delivered to the covered person, and sending it only to an email address that doesn't belong to them may not satisfy that requirement.
Does federal COBRA apply to every employer?
No. Federal COBRA generally only applies to employers with 20 or more employees; smaller employers may be subject to a separate state continuation-coverage law with different rules.
What steps should someone take to dispute an improper coverage cancellation and get a refund?
In many cases it helps to put the dispute in writing to the plan administrator and, if the plan is governed by federal benefits law, to file a formal written claim or appeal within the applicable deadline rather than relying on informal contact.
