COBRA Reinstatement after Cancellation

[Guest tomucko]

Here's a situation. A COBRA qualified beneficiary

notifies their COBRA administrator in writing that

they are terminating their COBRA coverage because they

have other coverage. They then learn that they do not

really have other coverage - in this case, it was the

mistake of the administrator of the new plan that

misinformed the COBRA participant. Can the COBRA

participant reinstate their COBRA coverage if they pay

the current month's premium before its due date? Is

there a cite for whatever the answer is?

Thanks.

Tom

[Sandra Pearce]

The regulations discuss what happens when a QB declines coverage and then later, before the end of the 60 day period, accepts coverage. This QB has notified the COBRA Plan that they have other coverage and if that was the case and the other coverage did not impose pre-existing exclusions then the COBRA Plan could deny or terminate the QB's continuation coverage. However, in the scenario as stated this is not the case and the QB does not have other coverage. Timely payment is sufficient to continue the coverage. I would suggest that the person send in at the same time as the payment the denial from the other company. If the payment is not made timely, within the 30-day grace period, then the COBRA Plan has no obligation to continue the QB's coverage.

[mroberts]

Agreed.