Paying for COBRA Continuation Coverage

The cost for COBRA continuation coverage varies, depending on your employer and the percentage they are willing to pay.

How Much Will It Cost?

Your employer can require you to pay up to 102 percent of the plan’s premium with the additional 2 percent covering administrative costs, but it can’t exceed this amount for the duration of initial COBRA coverage. This amount covers your portion, in addition to the employer’s portion of the health plan coverage paid while you were employed. However, if you receive the additional 11 months of COBRA continuation coverage past the first 18 months, your employer may require you to pay up to 150 percent of your COBRA coverage.

If your employer’s health plan costs increase while you’re covered under COBRA, your premium may increase as well, unless fixed in advance for a 12-month cycle.

When Is the First Premium Due?

You must pay your first premium within 45 days after the date on which you elected COBRA continuation coverage. This payment will reflect the period from the time you elected COBRA coverage and will be retroactive to the qualifying event date. Any premiums following successive periods of your COBRA coverage will be due on the specified date stated in your plan, and there will be a 30-day grace period in which for you to make your payment.

For more information on your plan, contact your plan administrator or human resource representative.

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