COBRA Premium Payment Processing Timelines Checklist

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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.

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1. Initial 45-day Deadline: The first payment is due 45 days after the qualified beneficiary's coverage ends.
2. 30-day Notice Period: A notice of at least 30 days is required for premium payments made to a COBRA administrator or a group health plan sponsor, before any penalties apply.
3. Administrative Deadlines: Payment deadlines are typically set by the COBRA administrator and may be subject to state-specific rules and regulations.
4. Penalties for Late Payments: The amount of penalty varies depending on the jurisdiction; it is usually 2% per month or an equivalent percentage, starting from the due date until the payment is received.
5. Reimbursement Process: In cases where payments are made late but still processed within a certain timeframe (usually 180 days), premiums may be reimbursed minus applicable penalties and interest.
6. Cancellation of Coverage: If premium payments are not made within the allowed timeframe, coverage under COBRA will terminate; in some jurisdictions, reinstatement might be possible with additional fees or on a case-by-case basis.

Implementing a COBRA Premium Payment Processing Timelines Checklist can benefit your organization in several ways:

• Reduces administrative burden by establishing clear deadlines and responsibilities for premium payments
• Ensures timely processing of payments, minimizing delays and penalties
• Provides a framework for managing complex payment scenarios, such as address changes or disputes
• Enhances compliance with COBRA regulations, reducing the risk of non-compliance fines and litigation
• Improves communication between stakeholders, including employers, administrators, and beneficiaries
• Supports efficient claims processing and resolution, streamlining the overall benefit administration process.

1. Employer Notice Deadline
2. Initial 60-day COBRA Election Period
3. Employee Notification and Election Deadline (45th day)
4. Plan Administrator Receipt of Employer Certification
5. Verification of Qualifying Event
6. Determination of Ex-Participant Status
7. Calculation of Applicable Premiums
8. Issuance of COBRA Premium Invoices to Participants