First payment under COBRA

lukkieseven

DO I COVER AN EMPLOYEE IMMEDIATELY AFTER RECEIVING THEIR ELECTION FORM, OR DO I WAIT UNTIL I RECEIVE THEIR PAYMENT BEFORE PUTING THEM BACK ON OUR MEDICAL PLAN?

I have an employee who terminated and was eligible to begin COBRA on 9/1/04. She sent in her election form dated 10/24/04. According to COBRA regulations, she has 45 days from 10/24 to send in her money, which brings it to 12/9. If she waits the 45 days before sending in her payment, she's going to owe for Sept, Oct, November and Dec. I'm afraid if I cover her effective 9/1 without any payment, she'll never pay and we'll be out the $$.

What's the employer's obligation?

Thanks for your input

irenesmsaclaims

If she elected COBRA timely and properly, you have to continue coverage without a gap. She will owe for all back premiums to the effective date of 9/1/04. If it's an insured plan, the company may terminate retro to a certain point.

jmcaa

[font size="1" color="#FF0000"]LAST EDITED ON 11-02-04 AT 01:09PM (CST)[/font][br][br]Our COBRA coverage is NOT ACTIVIATED until PAYMENT IS RECEIVED. We are self-insured, therefore every month a person is on COBRA, if we have not received their payment for the current month NO CLAIMS will be processed until payment is received.

I would wait until the 45th day and if she has not made the payment then you don't have to reactivate. I would not reactivate until I receive the payment. She should know by the COBRA Election papers sent to her how much she will owe. She may just want one month of COBRA therefore she would only owe for the September coverage.

Anyone can "elect" the COBRA coverage, but unless it is paid timely there is no coverage.