Q: If an employee does not have sufficient funds in their account to make a payment (i.e. their check was returned as Non Sufficient Funds) can we cancel the employee's Cobra coverage?
A:By law the employee must be given a 30 day grace period if payment is not received by the due date or if the check is returned as NSF. If the employee can make that payment before the grace period ends then their COBRA coverage will continue. However, the employer is not obligated under the COBRA law to accept any payments and re-activate (or reinstate) the coverage after the grace period has expired.
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