Short answer: COBRA includes a 30-day grace period for monthly premium payments. If payment is not made by the end of that grace period, coverage may be terminated and does not have to be reinstated.
COBRA rules provide specific timing protections for premium payments, but those protections are limited. Understanding the difference between the initial payment deadline and ongoing monthly payments is important.
After a qualified beneficiary elects COBRA, they have 45 days to make the initial premium payment. Coverage does not begin until that payment is made, but once paid on time, coverage is applied retroactively back to the COBRA start date.
For ongoing coverage, monthly COBRA premiums include a 30-day grace period. If a payment is late but received within the grace period, coverage must continue without interruption. Claims may be temporarily held during that time, but coverage is reinstated retroactively once payment is received.
If the premium is not paid by the end of the grace period, the plan may terminate COBRA coverage permanently. In that situation, the plan is not required to reinstate coverage or allow the beneficiary to catch up on missed payments.
Sources
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U.S. Department of Labor, FAQs on COBRA Continuation Health Coverage:
https://www.dol.gov/agencies/ebsa/laws-and-regulations/laws/cobra -
U.S. Department of Labor, An Employer’s Guide to Group Health Continuation Coverage Under COBRA (Premium Payment Rules):
https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/publications/an-employers-guide-to-group-health-continuation-coverage-under-cobra.pdf
Content history
Originally published: March 27, 2025
Last reviewed: January 24, 2026