Employee Misses First COBRA Premium Payment, What Happens?
I have an employee that has followed the guidelines to the letter of the COBRA law. However, he still has not made his payment but has time left. The carrier he is insured with will only go back 60 days to terminate someone out of their system. When my employee fails to make his payment (I am sure he will not) the carrier will not go back to his qualifying event date to term him. So my group will be left holding the bag for the premium for 2 months. Can the carrier refuse to terminate back to the qualifying date? I mean legally?
The employee is responsible for making all payments for the COBRA coverage. If they do not make that first payment, they would not be able to continue the group health insurance through COBRA. If payment is made the insurance is retroactive to the last day of employment. An employer is not required by law to continue the health insurance through COBRA if payment has not been made. The insurance carrier needs to be notified that the employee is no longer employed. The carrier is not required to continue the health insurance policy if the employee fails to pay.
Employers Guide To COBRA Health Insurance
Find out more about employer’s responsibilities for COBRA health insurance process. Business are legally obligated allow recently separated employees to stay on the same group health plan.
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COBRA Third-Party Administrators
Your COBRA plan may be managed by a third-party administrator. Many employers work with the following:
- ADP COBRA
- BASIC COBRA
- BAS' COBRA Control Services
- BenefitConnect EHR
- BenefitSolver COBRA
- Burnham & Flower
- BRI COBRA (Benefits Resource)
- bswift COBRA
- COBRAPoint Benaissance
- Employee Benefits Corp (EBC)
- Lifetime Benefit Solutions
- Navia Benefit Solutions
- Optum Financial
- Paychex
- Payflex
- Paycom COBRA
- PlanSource
- Total Administrative Service Corporation (TASC)
- WageWorks / Conexis
- WEX (formerly Discovery Benefits)
If you are unsure who your plan administrator is, reach out to the human resources department of the company that provided the health insurance you had.
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