Q: A former employee has not paid his premiums for his COBRA insurance for several months. I sent a notice that the insurance was being cancelled and he came in and paid the 3 months past due plus the current month. I had already cancelled the coverage for non-payment. Can I keep the premium for the past due months (since he did have claims and the insurance company will not cancel the coverage for those months) or is my company out of pocket? If I accept the payments for those months, can I still cancel his coverage? He has never paid on time and this is an ongoing problem.
A:Federal COBRA requires that you give the employee a 30 day grace period to make up a past due amount. Once the grace period has expired you do not have to accept his late payments. However, there maybe state laws that you must follow. You can visit www.naic.org to find the phone number for your state’s department of insurance.
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