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Cobra question Michigan

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  • Cobra question Michigan

    I have been paying for cobra and I sent the check in. Unfortunatly, I miscalculated and the check bounced and was returned to the bank. I called my former employer and they said to "not to worry and wait till monday". Do you think that they will terminate my cobra or do I have a grace period? I can't imagine them taking it away for being a few days late. I have never missed a payment and this was just a simple mistake on my behalf.

  • #2
    We have no idea what the company will do. However, legally, they are not required to give you a "grace period" regardless of your good payment history.
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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    • #3
      Was the payment made on time? Was it for the correct amount? There's a reason I'm asking.
      The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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      • #4
        COBRA

        When are Premium payments due?

        COBRA provides that qualified beneficiaries have 45 days from the date of the COBRA election to pay the initial premium and 30 days from the due date to pay all other monthly premiums. The due date is generally the first of the month, allowing for a payment to be received prior to the end of that month.

        What happens if premiums are paid late?

        Failure to pay premiums in a timely manner may cause a qualified beneficiary to lose COBRA coverage. A Plan Administrator is not legally required to advise the qualified beneficiary that he/she is late in paying COBRA premiums. If the qualified beneficiary’s premium is not paid by the expiration of the grace period, coverage terminates retroactively to the first day of the period for which timely premium payment was not made.
        Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

        Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

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        • #5
          Betty3, are you saying that the employer MUST allow the insured to be at much as 30 days late on a monthly payment? Isn't that just the initial COBRA payment? My understanding was that the law did not require any grace period for continuing payments.
          I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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          • #6
            No, there is a 30 day grace period for ALL COBRA payments.

            The initial payment must be paid within 45 days of the COBRA election, no grace period. Subsequent payments have a 30 day grace period. In addition, the reason I asked if the check was for the correct amount is that employers may not cancel COBRA for de minimus errors to the amount.
            The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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            • #7
              I sit corrected.
              I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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              • #8
                Originally posted by Pattymd View Post
                I sit corrected.
                Sitting down on the job are you!
                Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

                Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

                Comment


                • #9
                  No, I am on like month 15 out of the 18 that I am allowed (correct?) I am way past the initial payment and I made a dumb error and paid a bill twice out of my checking hence the bouncing of the cobra check. The due date was June 25th. I am going to call tomorrow and tell them to run the check through again and the funds will be there. So if I am understanding you correct, I have untill July 25th to pay this payment before they could cancel me? You are saying I should have nothing to worry about? Thank you for your time!

                  Comment


                  • #10
                    Originally posted by cjwatson View Post
                    No, I am on like month 15 out of the 18 that I am allowed (correct?) I am way past the initial payment and I made a dumb error and paid a bill twice out of my checking hence the bouncing of the cobra check. The due date was June 25th. I am going to call tomorrow and tell them to run the check through again and the funds will be there. So if I am understanding you correct, I have untill July 25th to pay this payment before they could cancel me? You are saying I should have nothing to worry about? Thank you for your time!
                    Yes, you are correct - you get 18 months of COBRA except in limited circumstances (such as being disabled at time you apply for COBRA or during the 1st 60 days of coverage).

                    If June 25th was the due date that your check was sent for (June prem. & not the end of the grace period for May), then, yes, you have a 30 day grace period from June 25th to pay that premium. (until "7-25")
                    Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

                    Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

                    Comment

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