Cobra Frustation

Johanaf

We have an employee under Cobra since she quit the company 6 months ago. In October our policy changed rates. I sent the new information and change of rates to the employee without sucess. Mail comes back to us with "person no longer at that address". I also called the insurance company and they have the same information that we have. The difference is $30 per month. What is our obligation? Do we have to keep the insurance going?

bsa

Send her a letter (certificate of mailing or certified) notifying her that she became delinquent in October and that she has 30 days to get current. In the meantime ask you insurance carrier to cancel her for nonpayment of premiums as far back as they will allow. If she responds to your letter, she can be reinstated. If you get the letter back from the post office, keep it for your records and close the book. If you are receiving only partial payment, same scenario applies, she has 30 days from the date of your letter to get current.

Terry

You can also send the letter with "address correction requested". If she is having the mail forwarded, you will then receive the corrected address.