How claims should be paid during the 30 day grace period allowed month

[Guest Carol]

I understand how claims and confirmation of coverage is handled during the 60 election period and the 45 days allowed for initial payment and we have that in place. My question deals with the 30 day grace period available each month for the premium to be paid and still be rec'd in a "timely manner".

What is the widely accepted method of handling claims during that period? To suspend all claims payment as of the first day of the 30 grace period until payment is received? To pay claims during the 30 day grace period, just as you would pay claims for any other "similarly situated employee" in that group during that 30 day grace period?

One of our concerns centers around our RX drug card...we provide an eligibility report weekly to the drug card company, if we suspend claims, their card would be canceled, as soon as the premium is paid we would have to reinstate the drug card and they would receive an updated report and automatically issue a new card. This could go on every month, depending if they access their grace period.

I am looking for options that other COBRA administrators would be using to handle this problem. As I understand the regulations, we need to provide "coverage" during the grace period...my question is "coverage" , is that verifying coverage or paying claims during that time period.

Any help would be greatly appreciated!!

[This message has been edited by Carol (edited 02-18-2000).]

[This message has been edited by Carol (edited 02-18-2000).]