How to Pay Your COBRA Insurance Premium
Premium payments are due on the first day of each month. You send your COBRA insurance payments to the plan administrator listed in your enrollment paperwork. This may be a third-party company, but in some cases it may be paid directly to the employer.
What You Need to Know
- Once you elect coverage, you have 45 days from the election date to pay your first premium.
- The first payment must include all premiums owed back to the date coverage would have started.
- Coverage is retroactive to the loss-of-coverage date, but it does not become active until the full initial premium is paid.
- Payments are made to a third-party COBRA administrator or the employer the insurance is through.
- On going monthly premiums have a 30-day grace period for payment.
Your First COBRA Payment
Coverage will not take effect until all required premiums are paid in full. When making your first COBRA premium payment, make sure you do the following to avoid delays or loss of coverage:
- Pay the full amount owed, including all back premiums to the coverage start date
- Pay within 45 days of your COBRA election date
- Send payment to the correct plan administrator or carrier listed on your notice
- Include any required payment references or account numbers
- Keep proof of payment, such as a receipt, canceled check, or confirmation number
Payments Are Made To The Employer
Some small business may have you mail your premium payments directly to them. They pay the insurance carrier to keep your group rate health plan active.
Third-Party Administrators May Have Other Ways To Pay
Some employers will use a third-party COBRA administrator (sometimes known as a TPA) to manage premium payments.
Many TPAs offer an online account that will allow you to pay by credit or debit card.
Payment Due Date
Monthly COBRA premiums are usually due on the date listed on your billing statement, often the first day of the month for that coverage month. Your election notice or monthly invoice should list the exact due date.
Grace Period
Each month, you have a 30-day grace period to pay your COBRA premium.
Methods of Payment
Most COBRA administrators accept payments by check, online bill pay, and sometimes credit or debit card. Check your enrollment paperwork or log in to your administrator’s website for their payment options.
Rate Increases
Because COBRA continues the employer’s group health plan, any change to that plan’s premiums means the amount you pay will change as well. This often happens during the employer’s open enrollment period.
Refunds for Overpayment
If you've overpaid your COBRA premium, contact your COBRA administrator. They may be able to assist with charging back your payment.