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12 month rate guarantee for cobra premiums
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Q:  I don't see mention here of a 12-month rate guarantee extended to COBRA QE's i.e., we have an August open enrollment. If a person termed in October and they didn't make any changes at open enrollment it's now 1 year later and we are going to write them with the new rates from October.

 

A:  COBRA rates are subject to the same increases that a group plan is as COBRA is just a continuation of the same plan that the employer offered.  Thus, if an individual elected COBRA in October and the rates increase at open enrollment in August, the individual would also receive the rate increase for their COBRA.


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