30-Day Grace Period to Pay Your COBRA Premium

  1. Knowledge Base
  2. Managing Your Plan
  3. Late Payments & Grace Period
What happens if I miss making my COBRA premium payment on time?

If your COBRA payment is not made within the 30-day grace period, you risk termination of your COBRA rights and coverage. If you make the payment within the allowed time, you will keep your coverage but must still pay for later months. It is best to communicate with your COBRA administrator about any payment that may not be made on or before the due date.

What You Need to Know

  • COBRA premiums must be paid within the 30-day grace period to avoid loss of coverage.
  • Late payments after the grace period may be declined, and coverage may end permanently.
  • Termination of COBRA for non-payment is not a qualifying event for a special enrollment period.
  • If COBRA is terminated outside open enrollment, your options are employer coverage or temporary health insurance.

Acceptance of Premiums Following the Grace Period

Payments made after the 30-day grace period are not required to be accepted by your former employer, and COBRA health insurance coverage may end if payment is not received on time. If your former employer and their insurance provider choose to accept a late payment, you will be responsible for paying all premiums owed to bring your account current.

Termination of COBRA Coverage for Non-Payment

If COBRA coverage ends because payment is not made within the 30-day grace period, the coverage cannot be reinstated.

Furthermore, ending COBRA due to non-payment is not considered a qualifying event for a special enrollment period for new major medical insurance. In this situation, you would need to wait until the federal open enrollment period in November, enroll in coverage through a new employer’s health plan, or consider a temporary private health insurance plan if available in your state.

Coverage Options Outside of Open Enrollment

If COBRA coverage ends due to non-payment, you will not qualify for a special enrollment period to enroll in a new major medical insurance plan. The following options may be available:

  1. Obtain major medical insurance through a new employer
  2. Apply for temporary health coverage that provides benefits for new accidents and illnesses

Frequently Asked Questions

The grace period for paying your COBRA premium is 30 days from the due date. Payments made within this time keep your coverage active without interruption. It is recommended to send payments early to allow for processing time.

If payment is not received within the 30-day grace period, your former employer is not required to accept it. In most cases, COBRA coverage will end and cannot be reinstated. If the employer chooses to accept a late payment, all past-due premiums must be paid in full.

Ending COBRA coverage for non-payment is not considered a qualifying event for a special enrollment period. This means you cannot immediately enroll in a new major medical plan through the Marketplace. You must wait until the federal open enrollment period or obtain coverage through a new employer.

You may be able to enroll in a health plan offered by a new employer if one is available. Another option is to purchase temporary health coverage, which can provide benefits for new accidents and illnesses until you can get major medical coverage. These plans do not replace comprehensive insurance but can help limit certain out-of-pocket costs.

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