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Q: Here's the scenario: qualifying event happened on 12/31/07...as long as I return the election form per the requirements for my former employer's group health plan w/ first payment...which would be by April 9, 2008. And I elect monthly payments? Will my first payment be from January 1 forward? If so, how do they reconcile that my first payment isn't due until 45 days from when my they received my election form and first payment? How am I supposed to come up with more than 5k from January through May for premiums? I'm so confused HELP? I know I'm responsible for the entire cost of my Cobra but is that from the qualifying date or something different???

A:  COBRA law gives the employee 45 days from the time COBRA is elected to make the first payment.  However, if you wait the 45 days you will be required to pay several months  to “catch up” because this coverage is retro-active to your last day of group benefits. Once you pay the back premiums then you will be allowed to pay monthly. We suggest that you submit the first payment with the election form as soon as possible. This way you will not get a large bill for several months of premium due with a limited time to pay it. If you and your family are health with no pre-existing conditions you may be eligible for a more affordable alternative to COBRA.  Some alternative plans can be 50% less than the COBRA rates.  Click Here for more information on a COBRA alternative plan.