COBRA Election without Payment

Leslie · June 2005

I have a discharged employee who elected COBRA upon exit. It's now a month later and we've seen no payment. Do I need to send another letter? How long does he have to make payment before I can cancel?

LindaS · June 2005

A COBRA participant has 45 days from the date they make their election to make the first payment. Payment needs to be retro to day #1. This information should have been spelled out in his packet of information regarding COBRA. If it was not, you need to send him something so he knows what his timeframe is.

lnelson · June 2005

Your COBRA notice should be very descriptive on when the participant elects COBRA what the payment requirements will be.

Ours breaks out First payment being 45 days after election of COBRA coverage retro to 1st day of loss, Periodic payments due on the 1st of the month of coverage and grace period for periodic payments due on the 1st of the month of coverage you are allowed 30 days grace period to submit the payment. Coverage will be terminated if payment is not made within the grace periods.

If you would to see our notification I can email it to you.

Lisa

Wandra · June 2005

Employees have 60 days from date of termination to make the COBRA election and once the COBRA election is made, they have 45 days from date of election to submit payment retroactive back to date of termination. As stated in other replies they then have to make their payments each month and do have a 30 day grace period. No payment, no coverage.

kcovalt · June 2005

The employee has 60 days from the date of termination of coverage or the date of notification, whichever is later, to elect COBRA coverage. The payment information is accurate.

COBRA Election without Payment

Comments