COBRA regulations assign mandatory time limits for continuation coverage. This is the maximum allowable period on COBRA. There are, however, a variety of reasons that COBRA could terminate early. Do you know what those are and how to handle these situations?

This article will review the permissible reasons to terminate COBRA before the maximum coverage period ends.

Untimely Premium Payment
Once a qualifying event notice is mailed to a qualified beneficiary, there is a time frame to elect and pay for the COBRA coverage. The first time frame is 60 days to elect (from the date of the notice or loss of coverage, whichever is greater). Once the election is made, the QB has a 45-day grace period from the election date, and a 30-day minimum grace period for each monthly COBRA payment thereafter. If a QB does not make these payments on a timely basis, then COBRA may be terminated.

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