When is the first payment for COBRA benefits due after termination of employment?

Question

My employer let me go and I have a pregnant wife due in 2 month. I think my employer is trying to pull a fast one and have me start paying for the benefits way too soon. I still have a paycheck to collect on April 4th since my announced last day is March 28th and they have been taking out the premium for the health insurance every paycheck. They want me to pay $500 of $685 starting the first of April to continue my insurance under COBRA. I just recieved the written notice today. Don't I have 45 or 60 days to decide and respond and then have 45 days to make that initial first payment? If so am I still covered during those periods and how long is my insurance supposed to last from my last employer sponsored coverage from payroll deduction?

I am so confused. I have read the article in the Dept. of Labor web sites but can't find anything that covers what statues the insurance coverage is on in the midst of all the notices and application process? Am I covered till' 1st payment ?

Answer 1

Your lucky the insurance company is on the ball

I got my COBRA payment info /request almost 2 months after my insurance lapsed

they wanted the 2 months BACK PAYMENT to continue my coverage

You have a baby on the way, you dont want any lapse in insurance

pay it

Answer 2

Your last day of work is March 28th.  The premiums are due April 1st, and there's no grace period.  Although you do have 60 days to decide to take it, if you DO choose to take it, the charge for it starts April 1st.  That means, by June first, you must pay the premiums for April 1st, May 1st, and June 1st, or there is no coverage, retroactive to April 1st (no fooling).  

You do NOT have 45 days to make the first payment.  If you do NOT make a payment, you are not covered, until/unless you elect to take cobra, and you have to pay for it from April 1st.  

The plan from your employer would cover you until either the day after the last day you worked, or the last day of the month in which you worked, depending on how it was set up.  Either way, come April 1st, if you don't take cobra, you aren't covered.

Only your HR department can tell you if you're covered until April 1st, if you don't elect Cobra.

Answer 3

If you exercise your right to obtain medical and other health benefits through COBRA, you are obligated to pay beginning with the first month after termination of employment.   Since your employment terminates at the end of March, you have to pay for the month of April and, typically, the former employer will collect the premium at the beginning of the month (to be sure they are able to get the money - no money, then no coverage).

You are eligible for coverage under COBRA for up to twenty-four months after termination of employment as long as your payments are up-to-date.

Answer 4

mbrcatz is wrong. After your 60 days of choosing to elect, you DO have 45 days to pay your premium. In case some mistake were to occur and your policy was to lapse then you would have to pay back premium PLUS interest. but if you milk it for what it's worth, and i suggest you do, you have a total of a 105 day grace period. but you DO HAVE A 45 DAY period to make your first cobra payment.

Answer 5

How long you are covered after you terminate is up to your employer. Typically, they will cover you until the end of the month, but you will have to verify that with them. You do have 60 days to elect coverage and 45 days after you elect the coverage to send in the first payment. So you do have a grace period. But you cannot choose when the coverage begins. Whatever the date that the coverage terminates with the employer is when the coverage through COBRA begins and you will have to pay the back premiums to cover those dates when you elect the coverage.

Check with your employer to see when your last covered day is with them--then you will know when the COBRA begins.