Question 1

What is COBRA?

Accepted Answer

COBRA stands for Consolidated Omnibus Budget Reconciliation Act. It allows qualified individuals to keep their group health plan for a specific period of time after they have had a qualifying event. Generally, COBRA will be the same coverage that was available while an active employee.

Question 2

How long does a qualified beneficiary have to elect COBRA?

Accepted Answer

A qualified beneficiary has 60 days to elect COBRA coverage, either from the date of the notice or the date coverage was lost, whichever is later.

Question 3

How many days does a qualified beneficiary have to submit a payment for COBRA?

Accepted Answer

After the initial election of COBRA, a qualified beneficiary has 45 days to submit the first payment for COBRA, including payment for any retroactive coverage. For each additional month, premiums are due on the 1st of the month with a 30-day grace period.

Question 4

Where can a payment be submitted for COBRA premiums?

Accepted Answer

Payments can be mailed to the address provided on the payment booklet. Qualified beneficiaries also have the option to pay one-time online, pay with a credit card or set up payments via ACH.
Payment address for checks: Higginbotham COBRA Services, PO Box 2990, Omaha, NE 68103
Online COBRA portal: cobraservices.higginbotham.com

Question 5

Can COBRA be terminated early for any reason?

Accepted Answer

Coverage could be terminated earlier than the period for any of the following reasons:

Premiums are not paid in full by the due date
The employer ceases to maintain a health plan
The qualified beneficiary being covered is covered under another group health plan after electing COBRA
The qualified beneficiary becomes entitled to Medicare benefits after electing COBRA

If the coverage is terminated early, the plan must provide an early termination notice to the qualified beneficiary. The notice must include the date coverage has ended, the reason for the termination of coverage and any rights the qualified beneficiary may have for other coverage.

Question 6

Can a qualified beneficiary extend their COBRA coverage past the initial period?

Accepted Answer

If a qualified beneficiary has an 18-month qualifying event, two situations could occur that might allow for an extension of COBRA coverage - disability and second qualifying events.

Disability: If a covered qualified beneficiary is deemed disabled, an 11-month extension (granting up to a total of 29 months) may be available for all covered on the plan. Certain criteria must be met, and documentation must be submitted prior to the end of the initial coverage period. Once approved, the plan may charge up to 150% during the 11-month disability extension.
Second Qualifying Events: If a second qualifying event is experienced by a family member, the initial 18-month period could be extended up to a total of 36-months. There are events such as the death of a covered employee, divorce or legal separation, covered employee’s entitlement to Medicare (in certain circumstances), and dependent child loss of eligibility. The second event would trigger an extension only if it causes a loss of coverage from the first qualifying event. The plan must be notified within a specific number of days from the date of the second event.

Question 7

Can a qualified beneficiary change coverage at open enrollment?

Accepted Answer

Yes, each qualified beneficiary has the right and must be given the option to participate in open enrollment similar to active employees. They can make coverage changes and update dependents as needed during the open enrollment period, the same as the active population. Each employer will determine the changes that can occur for the account during open enrollment.

Question 8

How can a qualified beneficiary cancel existing COBRA coverage?

Accepted Answer

The most secure method to cancel COBRA coverage would be to log in to the COBRA member portal. Once on the member page, there is an option to make a payment, make recurring payments or terminate coverage. Selecting the terminate coverage will provide options for cancelling coverage. This allows the qualified beneficiary to select the coverage(s) to cancel or cancel covered dependents. Once input is provided, there will be a confirmation screen before submitting the change. All changes are processed for the end of the month. The change is then reflected in the system immediately.

COBRA Help

Need COBRA assistance?

Contact Higginbotham COBRA Services