My former employer increased my Cobra payments when the new plan year kicked in.?

Question

I read somewhere that cobra payments were fixed for 12 months, from time of onset. If this was illegal who should I contact, as I have been paying almost twice as much since the new plan period kicked in, for five months now, and it occurrs to me that maybe I have been making overpayments? Since this is federally mandated, am I entitled to an reimbursement? And, if I am who should I report this to, I don't think the former employer is going to be eager to admit wrongdoing, and offer me a reimbursement?

Answer 1

Your employer didn't increase the payments - their insurer did.  The group health rates are set for 12 months, and then every year, they are re-evaluated.  It's 12 months from the date of inception of the master policy, NOT 12 months since YOU signed up for cobra.   You have to pay 102% of the rate.  

Likely, you're not entitled to reimbursement, and this likely isn't illegal.

You would direct complaints to your state insurance commissioner.

Answer 2

Cobra payments aren't set.  If your former employer switches plans or has a rate change they are passed on to you.  I doubt you are overpaying.  

My guess would be that your former employer was just as upset by the rate increase as you are.

Answer 3

Your employer is entitled to charge you 102% of what it costs for the employee plan.

If the cost for the employee plan changed with the new benefit year, then your COBRA premium goes up too.

Its not illegal - that's the way it works.

Answer 4

Health care prices rise almost yearly. So more then likely with the rise, your COBRA rates rose as well.

Answer 5

Cobra is not fixed for 12 months.  It is where you pay the full amount of your benefits after leaving a job.  So basically if they change plans or have an increase, so do you.