COBRA payments for entire year
MrCreosote
144 Posts
This question concerns an employee's parent who was laid off from another company and I'm just trying to offer her some advice without getting directly involved.
Employee was laid off and told that she could elect COBRA, but that if she did, she would have to pay the premiums up front for an entire year. I have never heard of such a practice and it seems very wrong, and probably illegal, to me. But I have searched DOL site and Illinois DOL site and cannot find anything addressing this particular issue. Can anyone point me to a reference or law that addresses it?
Employee was laid off and told that she could elect COBRA, but that if she did, she would have to pay the premiums up front for an entire year. I have never heard of such a practice and it seems very wrong, and probably illegal, to me. But I have searched DOL site and Illinois DOL site and cannot find anything addressing this particular issue. Can anyone point me to a reference or law that addresses it?
Comments
"COBRA premiums may be increased if the costs to the plan increase but generally must be fixed in advance of each 12-month premium cycle. The plan must allow you to pay premiums on a monthly basis if you ask to do so, and the plan may allow you to make payments at other intervals (weekly or quarterly)."
Here is the link [url]http://www.dol.gov/pwba/faqs/faq_consumer_cobra.html[/url]