Retroactive COBRA rate increase?

[jeanine]

New COBRA rates for the 12 month period are due Jan.1. Plan does not receive rates, quotes last year's rate to current COBRA enrollees and new elections. New rates arrive Jan. 25. Plan wants to retro the increase back to Jan.1, even though premiums are paid for January and in some cases 3 months in advance. My first thought is no way, but how long is the Plan tied to the rates quoted Jan.1?? May the Plan use the new rates any time during the 12 month period or are they bound (quasi-contractually) to provide COBRA at the first premium amount until a new 12 month period. Please provide citation if available...right now I'm thinking 26 USCS Section 4980B(f)(4)©applies("any applicable premium shall be made for a period of 12 months and shall be made before the beginning of such period."

[JWK]

You may want to take a look at the new final regulations, specifically 54.4980B-8, A-2(B), which indicates that the amount can be increased during the 12-month determination period if the plan was charging less than the maximum permitted amount and the increased amount does not exceed the maximum permitted amount.