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Q:   I have been informed that my COBRA payment went up in June 2007 $70.99 per month and them now want that payment in arrears. I think they are lying about the increase since I called and checked in July and was told there was only a small increase in the company's health insurance premium when it was renewed in June, and that my COBRA remained the same. Do they have to provide me with proof of the increase? Don't they have to notify you promptly of any increase in premium, not 5 months later??? Also, they are now saying that they never charged me a 2% handling fee and now want me to start paying it AND pay it in arrears for the last 9 months! Can they do this?

A:   If your employer’s health insurance carrier has a rate increase (no matter how small) then your COBRA premiums will be increased.  Your COBRA premiums are based on what the employer paid or would pay for your insurance if you were a active employee, plus the amount that an active employee pays towards the cost of insurance.  They do not have to provide you with proof of the increase.  They may not have been aware of the increase or how much it would be until they received their insurance bill.   Under COBRA law, the employer can charge you up to 2% for an administrative fee from the time your COBRA starts.  If you believe that your employer is not complying with the COBRA laws, you can contact the US Department of Labor at 1-866-487-2365.