Not all COBRA has reinstatement if paid within grace period?

Jul 30, 2018

  1. yorkriver1
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    yorkriver1 Guru

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    My client says the employer website states if premium is not paid by their deadline, which is day before last day of the month, the coverage lapses, and if paid within 14 days after, they "may" reinstate.

    Not how the DOL/IRS rules read, but I am no expert. The reason for the cliff hanger is the client decided later in July to get other coverage 8/1 instead of the last date of their 18 months, 9/1. The other coverage is still in pending status.
     
  2. leevena
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    leevena Guru

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    Little confused by your post, but if I understand it, your client is currently covered by cobra, correct? If so, the premium is due on the 1rst, and is considered late if not received by end of month. If so, the plan becomes lapsed. Once past the lapse date the plan does not have to reinstate, so this employer seems willing to work with the employees.
     
    leevena, Jul 30, 2018
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  3. LostDollar
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    LostDollar Guru

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    Not an agent, but a consumer who has dealt with a Cobra situation.

    My situation may have been a little different, but when we were on Cobra, the company had a third party administrator who handled it all. The third party administrator was usually very easy to reach by phone or email. For the situation you described I would be writing a check today, putting it in an envelope and taking it to the main PO to mail, buying postage there and getting a receipt to show when I mailed it. I would also be doing an email indicating I had overlooked writing the check and was getting check number xxxxx out in the mail from my city tonight. That would have covered us, don't know about your client's situation.

    Some months back another agent on the forum pointed me to one of these manuals when I was having some cobra issues-here is at least some cobra background for you:

    https://www.dol.gov/sites/default/f...-health-continuation-coverage-under-cobra.pdf

    https://www.dol.gov/sites/dolgov/fi...yees-guide-to-health-benefits-under-cobra.pdf

    Edit: If the Cobra would have been with my own former employer who collected the Cobra premiums themselves, My top priority this afternoon would be hand delivering a check to their controller.
     
  4. yorkriver1
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    yorkriver1 Guru

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    The DOL doc you linked is one I found, that says, 30 day grace period, but what it also says, is they can drop the coverage 1st day of late month, then reinstate it if payment received within the 30 day grace period. Turns out my client's situation was that the admin for COBRA could reinstate within 14 days after 1st of month, but not guaranteed. This is not my specialty, so, the other good news is the plan they applied for approved them 8/1 and emailed as such this morning, so goodbye COBRA.
     
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