Alex Is there a grace period for COBRA?
What is the grace period for monthly COBRA premiums? After election and initial payment, qualified beneficiaries have a 30-day grace period to make monthly payments (that is, 30 days from the due date).
What happens if you miss the Cobra due date?
Let’s say you’ve been on COBRA continuation health insurance for 6 months. Your health plan sets May 25 as the due date for your premium for coverage from June 1 through June 30. You miss the May 25 deadline. Your health insurance coverage is canceled on June 1st.
When to mail your late Cobra Premium payment?
You break your ankle on June 10 and rack up an emergency room bill for $4,000. On June 15, you hobble to the post office on crutches, mailing your late COBRA premium payment well within the 30-day grace period. Your health insurance company has to credit your payment for June, ensuring that you continue to have seamless coverage.
When do you become entitled to COBRA continuation?
If you become entitled to elect COBRA continuation coverage when you otherwise would lose group health coverage under a group health plan, you should consider all options you may have to get other health coverage before you make your decision.
When does the federal government stop paying for Cobra?
As described in the next section, there is also a new federal subsidy that covers the cost of COBRA from April 2021 through September 2021. And some people who previously rejected or terminated their COBRA coverage will have another opportunity to enroll in it.
When do you Lose Your COBRA insurance coverage?
Your COBRA coverage will be provided for each month as long as payment for that month is made before the end of the grace period for that payment. If you fail to make a monthly payment before the end of the grace period for that month, you will lose all rights to COBRA coverage under the Plan.
What happens if you don’t make a Cobra payment?
Your coverage will probably be canceled, but you can get it back. If your health plan hasn’t received your payment by the due date, it has the right to cancel your coverage on the first day of that coverage period. However, it must reinstate your coverage if you make your payment within the 30-day grace period.
You break your ankle on June 10 and rack up an emergency room bill for $4,000. On June 15, you hobble to the post office on crutches, mailing your late COBRA premium payment well within the 30-day grace period. Your health insurance company has to credit your payment for June, ensuring that you continue to have seamless coverage.
If you become entitled to elect COBRA continuation coverage when you otherwise would lose group health coverage under a group health plan, you should consider all options you may have to get other health coverage before you make your decision.