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Q:  I was laid off October of 08 and let my coverage lapse due to high premium costs. After the enactment of the ARRA Act, I re-applied to get my coverage back. I called and spoke with a representative several different times and became utterly frustrated because I was not receiving any information and did not know the status of my coverage until recently. I was told I would be approved June 10th. I just received an invoice asking me to pay for prior months starting back in March of this year. Here are my questions/concerns: 1.How come I am being asked to pay for prior months if I was not even approved until last month? 2. Is it right for the company covering COBRA to ask for payments of months prior? I don't think it's fair to ask me for back payment of premiums when I was not even approved until June. I also checked this company in the BBB database and seemed they did not receive a high rating; I am concerned that this company may not be reliable when handling COBRA coverage payments. If I am to pay for COBRA I want to know the company I am dealing with will be responsible and handle my claims in a timely manner.

A:  I would recommend visiting the website www.dol.gov/COBRA it will tell you exactly how COBRA works and as to why you have to pay retro-actively to March.

Qualified beneficiaries whose qualifying event was an involuntary termination of employment during the period from September 1, 2008 through February 16, 2009 who did not elect COBRA when it was first offered or who did elect COBRA but are no longer enrolled (for example, those who dropped COBRA coverage because they were unable to continue paying the premium) have a new, second election opportunity. Individuals eligible for the extended COBRA election period must receive a notice informing them of this opportunity. This notice must be provided by April 18, 2009 and individuals have 60 days after the notice is provided to elect COBRA. However, this special election period does not extend the period of COBRA continuation coverage beyond the original maximum period (generally 18 months from the employee's involuntary termination). COBRA coverage elected in this special election period begins with the first period of coverage beginning on or after February 17, 2009.

Under ARRA, this special election period opportunity is not required to be provided with respect to State continuation coverage that is provided pursuant to State insurance law. A State can take action, however, to provide an additional election period in its continuation coverage program for individuals involuntarily terminated from September 1, 2008 through February 16, 2009 in order for them to request premium assistance based upon involuntary termination occurring during that period. For more information on rights and responsibilities regarding election periods under State law, contact your State insurance commissioner’s office or CMS.