Cancelling coverage of COBRA participant
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I need to send a registered, return receipt letter to a COBRA participant who has not paid her premiums since June 1. I know I should have done this sooner but this is the first COBRA non-payment we have had and I tried to set up a payment pay with her to catch up. She has missed every payment date. Our company lawyer has reviewed the case and said to send her notice that coverage will be cancelled if full payment is not received by such and such a date.
My question: Is there a format required by the COBRA law for a cancellation notice. Certain information that must be included? Does anyone have a letter they can share?
Please send samples to [email]dbrockmeyer@ofallon.org[/email] or fax to 618-624-4508 as soon as possible. My maternity leave could start any day (any hour) and I don't want to leave this hanging while I'm out.
Thanks for your help.
My question: Is there a format required by the COBRA law for a cancellation notice. Certain information that must be included? Does anyone have a letter they can share?
Please send samples to [email]dbrockmeyer@ofallon.org[/email] or fax to 618-624-4508 as soon as possible. My maternity leave could start any day (any hour) and I don't want to leave this hanging while I'm out.
Thanks for your help.
Comments
"Other than the 30 day grace period, no further statutory or regulatory requirement exists. Mailing a notice of cancellation of COBRA is not required.
As with many things COBRA, rules are determined by court cases. From Sirkin v. Phillips Colleges, Inc., the grace period is extended if the qualified beneficiary is mentally or physically unable to make a timely payment. I believe in this case the grace period was extended until a guardian could be appointed to handle the person's affairs.
I hope this helps. As far as a sample letter, I'd use something like the attached."
Kimberly A. Greene, CEBS, RHU
Ross & Yerger Insurance, Inc.
(601) 944-0831
(601) 914-9335 fax
[email]kgreene@rossandyerger.com[/email]
Name
Address
City/St/Zip
RE: XYZ Corporation Medical Benefit Plan
Dear ___:
This letter is to notify you that coverage for you and your family through the XYZ Corporation medical benefit plan is terminated effective June 1, 2002 due to non-payment of the required COBRA premiums.
Should you wish to discuss this in further detail, please do not hesitate to call me. My direct number is __________.
Thank you.
Sincerely,
We make sure that the employee is "instructed" in an exit interview and that their official mailed notice states that we are not required to bill or remind, and the we will NOT bill or remind, and that they have the same grace period to pay that we do, by the last date of the month that the premium is due. If it is not received by that date, then we will cancel their coverage with no further notice. The only time that we have not cancelled was if the person called and said that the payment was on the way and we have not yet processed the cancellation (usually within the first week of the next month) however, since we do not pay their premium until we receive it, we also inform them that we cannot guarantee that the insurance company will accept the late payment. We always send off payment the day we receive their check (or even hand carry the payment), so that we do not have any delay issues.
We don't really want to be so hard about this issue, but there are so many things to worry about with COBRA that we try to stick to the rules without granting any additional privleges so that it makes it easier to administer across the board.
CANCELLATION NOTICE
This letter is to notify you that the insurance premium payment has not be received for [u]MONTH(S)[/u] for the COBRA Continued Coverage you elected. Your medical insurance will be cancelled effective [u]30 DAYS FROM DATE OF LETTER[/u], unless we receive payment of [u]$XX[/u] by [u]?? ANY DATE[/u].
CANCELLATION
This letter is to notify you that your health insurance has been cancelled effective [u]DATE[/u]. The insurance premium payment was not received as required for the COBRA Continued Coverage you elected.