Posted 31 January 2012 - 09:35 AM
So what happens if an employee takes 55 days to elect (about 2 months), then doesn't pay the premiums, but they have submitted claims to insurance, and the insurance refuses to refund the premiums back because of those claims? As an administrator, when must I re-enroll the COBRA participant? Upon receiving the first premium check, or upon receiving the election? If it is upon receiving the election, we could be left with paying premiums for a deadbeat COBRA participant!
Posted 28 February 2012 - 02:41 PM
Most plans I've worked on don't enroll in COBRA until the first payment is received. Whenever I'm counseling someone about COBRA, I mention that he or she should consider sending payment in with the election form for that reason.
I agree. Most administrators do not enroll someone in COBRA for just this reason. Electing COBRA is really a 2-step process: notifying the administrator of your desire to continue coverage and paying the necessary premiums.