Q: My cobra was cancelled due to a penny shortage. Is this legal?
A: Unfortunately if your COBRA administrator does not receive the full monthly payment by the due date it will be considered a late payment. Your COBRA administrator/previous employer have to give you a 30 day grace period to make a late payment.If your COBRA is cancelled because you did not make a payment during your grace period, the employer or plan administrator does not have to re-instate your COBRA coverage. I suggest contacting your COBRA administrator to see if there is any thing you can do to re-instate your coverage.
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