Q- Under our plan, an individual on COBRA coverage must pay by the first of the month for that month of coverage. Do we have to accept late payments?
A- Under the COBRA rules, you must give continuants a 30 day grace period to have their payment mailed. If premiums are due by the first of the month, that means you have to give them until the 30th of the month (or for February’s payment, March 1 or March 2, depending if it is a leap year), to send payment before you can cancel coverage.