A group health plan subject to federal COBRA does not have to provide coverage to a qualified beneficiary until a timely election is made and required premiums are paid. Qualified beneficiaries have 45 days after the initial election for coverage to pay for that coverage. For months thereafter, continuants must pay by the premium due date, but are given a 30 day grace period to make payment. A continuant must make timely payment without any reminders.
As a courtesy to continuants, Cobra Control Services (CCS) provides monthly payment coupons for continuants to use to remit payment for coverage. These coupons are not required by the COBRA law, but are provided as a convenience for the COBRA continuant.
Coupons are mailed to the continuant's home address after the qualified beneficiary elects continuation coverage. Typically, coupons for months through the end of the plan year are provided at the initial election. After the employer or broker provides CCS with premium rates for the next plan year, new payment coupons are mailed to continuants.
For questions about CCS' COBRA services, please contact info@cobracontrol.com.
