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COBRA
Information and Resources
If you're
interested in learning more about COBRA Continuation Health Coverage or
VIPER® affordable COBRA alternatives, you've come to the right place. VIPER®
Health Insurance is the industry standard alternative to COBRA, and the
industry leading information site on COBRA Continuation Health Coverage.
This website is jam-packed with useful information, FAQs, articles,
resources, and services geared to help employees better understand their
rights and the laws pertaining to COBRA Continuation Health Coverage.
COBRA - Paying to Continue Health Coverage
Who pays for COBRA coverage?
Beneficiaries may be required to pay for COBRA coverage. The premium cannot
exceed 102 percent of the cost to the plan for similarly situated
individuals who have not incurred a qualifying event, including both the
portion paid by employees and any portion paid by the employer before the
qualifying event, plus 2 percent for administrative costs.
For qualified beneficiaries receiving the 11 month disability extension of
coverage, the premium for those additional months may be increased to 150
percent of the plan's total cost of coverage.
COBRA premiums may be increased if the costs to the plan increase but
generally must be fixed in advance of each 12-month premium cycle. The plan
must allow you to pay premiums on a monthly basis if you ask to do so, and
the plan may allow you to make payments at other intervals (weekly or
quarterly).
The initial premium payment must be made within 45 days after the date of
the COBRA election by the qualified beneficiary. Payment generally must
cover the period of coverage from the date of COBRA election retroactive to
the date of the loss of coverage due to the qualifying event. Premiums for
successive periods of coverage are due on the date stated in the plan with a
minimum 30-day grace period for payments. Payment is considered to be made
on the date it is sent to the plan.
If premiums are not paid by the first day of the period of coverage, the
plan has the option to cancel coverage until payment is received and then
reinstate coverage retroactively to the beginning of the period of coverage.
If the amount of the payment made to the plan is made in error but is not
significantly less than the amount due, the plan is required to notify you
of the deficiency and grant a reasonable period (for this purpose, 30 days
is considered reasonable) to pay the difference. The plan is not obligated
to send monthly premium notices.
COBRA beneficiaries remain subject to the rules of the plan and therefore
must satisfy all costs related to co-payments and deductibles, and are
subject to catastrophic and other benefit limits.
COBRA information and Frequently Asked Questions FAQs
Learn more about COBRA continuation of health insurance
by selecting a link below.
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