Q: I have a new employee who is/was on Cobra from a previous employer. She received a termination notice from Cobra because the mailed payment was not received (and not yet cashed). She was never advised that there was a 30 day grace period to replace the check and make her account current. They just told her it was cancelled. What is her right to reinstate with paid current premiums? What is Cobra's obligation to inform her of her reinstatement rights?
A: If your COBRA payment is not made in a timely manner, or within the 30 day grace period than you are risking termination of your COBRA rights and coverage. If you do make the payments with in the time allowed you will not lose coverage, but will still need to pay the later months coverage. It is best to communicate with your COBRA administrator about payment that may not be made on or before the due date. Please note that the previous employer is not required under COBRA to remind the employee when it is time to pay the premium.
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