non payment from client

Q: Can you please tell me what we are to do when we do not receive payment from an ex employee for their Cobra benefits. Are we required to continue paying for their benefits, if so, how long before we can terminate them for non payment? What is constituted as a timely manner? A: Here are the list of reason that an exemployee (qualified benificiary) can be terminated from their COBRA coverage: 1. If you do not recieve Their premium payment in a timely manner. A payment is considered “timely” if it is made with in the 30 days from the due date. 2. The employer no longer has a group health plan to offer to the qualified benificiary and/or the entire company. 3. They have additional group health insurance and the pre-existing limitations clause has been removed. 4. They have group health insurance with a new employer that does cover pre-existing medical conditions. 5 . They become entitled to Medicare benefits after their election date. 6. Their coverage has come to an end by meeting the maximum coverage time period.

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