COBRA Insurance
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Incomplete COBRA Payment

ody Q: My COBRA coverage was to begin on December 1, 2013. Knowing I had 60 days, I sent in my enrollment form and first months payment at the end of December. I only wanted it for one month. I then get a letter from the TPA that the rate is increased and I need to make a payment of $200 to make full payment. I never made this payment for the difference with the new rate. They kept sending me a statement with the difference of what I owe for December, and the amount for January They sent me another statement for February. They cancelled my COBRA on March 1. I used to do COBRA and remember if you don’t make full payment, your COBRA coverage is cancelled immediately.

My questions are:

1. Since I did not make a full payment, as it legal for the TPA to deposit the check?

2. Because it was not full payment, and I never used my COBRA coverage, am I due the refund because it was never completely paid for?

3. Is it legal to continue offering COBRA after full payment was not received for three months?

A: In order to find the answers to these questions, you can look at the Department of Labor’s outline of COBRA.

Typically, and administrator would not deposit an amount if it wasn’t the full premium payment due, but you need to get in contact with that administrator directly to find out if you are eligible for a refund.

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