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Due to COVID I loss work.

I requested COBRA paperwork filled them out and returned them to my former employer I never received any bill or any request for payment. I never paid anything toward my COBRA. Now my former employer is asking for back payments. I was under the assumption that I would need to make payments within 45 days or the policy would be canceled.

Chris W. Rea
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tinactin1234
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2 Answers2

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The paperwork you signed should have made it clear who was responsible for the cost of the insurance.

Normally there is a requirement to make the first payment within 45 days. That requirement was loosened due to the COVID emergency.

Ignoring the emergency changes, the system doesn't require the payment to come from the former employee. COBRA payments can also be made by the former employer, the new employer, a union, or some other third party.

The paperwork should have made it clear how the payment was to be made, including how you would be billed if you had a responsibility for the payments.

Speaking of payments, the paperwork should have made clear what it would cost you. There is no rule of thumb. I have known companies that normally pay 100% of the premium for their employees; so if they went under COBRA they would now have to to go from paying 0% to paying 100%. Other companies pay 100% for the employee but a lower percentage for the rest of the family.

The paperwork should have also given you the method for canceling the coverage.

Please review all the paperwork you submitted, and any other documents you received related to this situation.

mhoran_psprep
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Employer Paid COBRA asking for reimbursement

They probably (I'm just guessing, based on age/experience) did that as a courtesy to you so that you would not lose your COBRA insurance.

I was under the assumption that I would need to make payments within 45 days or the policy would be canceled.

Yes, that's true. You probably weren't the only person released; given the flood of paperwork, and need to work from home, there was probably a backlog in processing them.

Now that they've processed the paperwork, they reasonably want their money back.

You should have:

  • called your company after a few weeks to ask them about your COBRA paperwork, and
  • put aside 3x your standard health insurance payments, because that's approximately what COBRA costs.

(Of course, I completely sympathize with not doing what you "should" do in this traumatic time, so don't take my comment as a criticism.)

RonJohn
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