COBRA rules include a 30-day grace period for monthly premium payments. If payment is late but made within that window, coverage must remain active and be reinstated retroactively.
📆 How It Works:
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After electing COBRA, the participant has 45 days to make the initial premium payment
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Ongoing monthly premiums are due on the same day each month
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If a payment is missed, there’s a 30-day grace period to make it
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If the premium isn’t paid by the end of the grace period, coverage can be terminated permanently
🧠Key Notes:
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Coverage continues during the grace period, but claims may be held until payment is received
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If payment is made within the grace period, coverage is retroactive—no lapse
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If not paid in time, the plan is not required to offer reinstatement