The premium for Mini-COBRA coverage cannot exceed 102% of the cost of the small group health benefit plan for similarly situated individuals who have not had a qualifying event. Disabled individuals may be required to pay 150% of the premium for Mini-COBRA coverage after the initial 18-month period expires. |
The first premium payment must be made within 45 days after the day Mini-COBRA is elected. The small group carrier cannot require the first premium payment before that date. |
Subsequent premium payments may, at the election of the Qualified Beneficiary, be made in monthly installments. The Mini-COBRA law allows a minimum 30-day grace period for subsequent premium payments. The grace period may be longer if the terms of the small group health benefit plan allow for a longer period. |
The Mini-COBRA law indicates that the small group carrier may require that payments and related communications be made indirectly through the small employer/intermediary. Pursuant to the Division's Bulletin 97-05, if the small group carrier requires the small employer/intermediary to collect premium payments from a Qualified Beneficiary, it cannot require the small employer/intermediary to pay any premium "up front" for the Qualified Beneficiary. Therefore, Qualified Beneficiaries should make every effort to pay their premium for Mini-COBRA coverage in a timely manner. This will ensure that Mini-COBRA coverage is not cancelled due to nonpayment of premiums. |
Payment of Premiums