COBRA Premium Payment Processing Deadlines Checklist

You have 2 options:
1. Download the Checklist as PDF for Free and share it with your team for completion.
2. Use the Checklist directly within the Mobile2b Platform to optimize your business processes.

We have a collection of over 5,000 ready-to-use fully customizable Checklists, available with a single click.

Pricing is based on how often you use the Checklist each month.
For detailed information, please visit our pricing page.

Here are the steps to help you prepare and meet the COBRA premium payment processing deadlines:

1. Understand COBRA: The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires group health plans to provide coverage for qualifying beneficiaries at group rates for a limited time.

2. Notify Qualifying Beneficiaries: Inform eligible employees of their right to COBRA coverage within 45 days from the date of the qualifying event.

3. Provide COBRA Election Notice: Send a notice to each qualified beneficiary, detailing their option to continue health plan coverage and explaining how to elect or decline it.

4. COBRA Premium Calculation: Calculate the COBRA premium by adding any applicable administrative fee. The amount cannot exceed 150% of the group rate, including the added fee.

5. Payment Processing Deadlines:

   • Initial Payment Deadline: Typically 45 days from the date the qualified beneficiary elects to continue coverage.
   • Subsequent Payments: Due dates for payments are usually the same day each month as the first premium payment.
   • Late Fee: If premiums are not paid on time, a late fee may apply.

6. COBRA Premium Payment Options:

   • Cash or Check: Accepting cash or check is optional; employers must inform beneficiaries of this option if it's available.
   • Electronic Funds Transfer (EFT): This method allows for automatic transfers from the beneficiary’s bank account to pay COBRA premiums.

7. COBRA Premium Payments Tracking:

   • Maintain accurate records of all payments, including checks, EFTs, and any late fees.
   • Ensure that these records are readily available for audit purposes.

8. Notify Employers: If a beneficiary’s employment is affected, promptly inform the employer and provide any necessary documentation or information related to COBRA coverage.

9. COBRA Notice of Expiration: When a qualifying event expires (e.g., 18-36 months post-event), notify beneficiaries that their right to continue health plan coverage has ended.

10. Compliance with State Laws: Some states have additional requirements for COBRA administration; be sure you are compliant with all applicable laws and regulations in your area.

11. COBRA Administrative Responsibilities:

    • Designate a person or department within the organization responsible for managing COBRA-related tasks.
    • Ensure that this individual has the necessary training, resources, and authority to perform their duties effectively.

12. Review and Update Policies: Periodically review your company’s policies regarding COBRA continuation coverage, ensuring they are up-to-date with all applicable laws and regulations.

By using a COBRA Premium Payment Processing Deadlines Checklist, your organization can:

• Ensure compliance with federal and state regulations regarding COBRA premiums
• Avoid penalties for late or missed payments
• Provide a clear timeline for premium payments and associated deadlines
• Facilitate timely payment processing and reduce the risk of administrative errors
• Enhance overall operational efficiency and reduce administrative burdens

Here are the key components:

1. COBRA Election Deadline: The deadline by which beneficiaries must elect continued health coverage under COBRA.
2. Initial Premium Payment Deadline: The date by which beneficiaries must pay their first month's premium to continue COBRA coverage.
3. Ongoing Premium Payments: The frequency and deadlines for subsequent monthly or bi-weekly premium payments.
4. Payment Methods and Formats: Accepted payment methods, such as check, credit card, electronic fund transfer (EFT), etc.
5. Late Payment Penalties: Any late fees or penalties associated with missed premium payments.
6. Disability and Leave of Absence Rules: Special rules for beneficiaries on leave or disability, regarding COBRA coverage and premium payments.
7. Termination of COBRA Coverage: Conditions under which COBRA coverage will terminate, such as failure to pay premiums or exceeding the maximum coverage period.
8. COBGA Opt-Out Deadline: The deadline by which a qualified beneficiary may opt out of COBRA coverage in favor of other group health plan coverage.