How do I make my COBRA payment?

Asked by: Pete Rowe  |  Last update: May 23, 2025
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Payment can be made by check (personal check, business check, cashier check, bill pay check from a financial institution of your choice), money order, recurring electronic payment, one-time electronic payment, debit card, or credit card.

How do I pay my COBRA payment?

How can I pay COBRA premiums? The three ways to pay COBRA premiums are through ACH (linked to your bank account), credit/debit card or check. We recommend paying by ACH.

Can COBRA payments be made online?

COBRA qualified beneficiaries (QBs) and special plan members (SPMs) have the option to make a payment online via the member portal. When logging into the system they will receive an option to make payment or setup recurring payments.

How does an employee pay for COBRA?

COBRA allows former employees, retirees, and their dependents to temporarily keep their health coverage. If you get COBRA, you must pay for the entire premium, including any portion that your employer may have paid in the past. This means your payment is often more expensive than what you paid as an employee.

How long do I have to make a COBRA payment?

The initial premium payment must be made within 45 days after the date of the COBRA election by the qualified beneficiary. Payment generally must cover the period of coverage from the date of COBRA election retroactive to the date of the loss of coverage due to the qualifying event.

COBRA Insurance | What You Need to Know

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What is the 60 day loophole for COBRA?

You have 60 days to enroll in COBRA once your employer-sponsored benefits end. Even if your enrollment is delayed, you will be covered by COBRA starting the day your prior coverage ended.

How long do you have to send a COBRA notice?

14-Day Notice Period

The HR office must provide the COBRA Election Notice and Election Form to qualified beneficiaries within 14 days from the date of the qualifying event or loss of coverage, or when the HR office is notified, whichever comes first.

How much will my COBRA payment be?

As a result of these factors, your COBRA premium will typically be higher than the amount previously deducted from your paycheck. Based on plan and state, COBRA costs range from about $400 to $700 per month and are based on the following: Your previous monthly insurance contribution.

Can I ask new employer to pay for COBRA?

Yes, an employer can pay all or part of a former or current employee's COBRA premiums. Employers may do so as a means to assist an employee during a merger, acquisition, layoff, termination, temporary or permanent disability, retirement, or as part of a recruitment strategy.

Are COBRA payments reported on W-2?

In general, each employer providing coverage will have to report the prorated cost on the employee's W-2. If the employee is terminated, the employer can also include the COBRA payment amounts paid by the employee after termination.

What happens if you miss a COBRA payment?

If your COBRA payment is not made in a timely manner, or within the 30-day grace period then you are risking termination of your COBRA rights and coverage. If you do make the payments within the time allowed you will not lose coverage, but will still need to pay the later months' coverage.

How to elect COBRA online?

How to elect COBRA:
  1. Use the account number provided in your COBRA Election notice or primary account holder's Social Security Number to register on the member portal.
  2. Select Enroll in COBRA to select your coverage and complete the enrollment process.
  3. Make a payment.

How do I access my COBRA account?

To access your account online go to the Login menu and select COBRA & Direct Billing.
  1. Enter Username and click Next.
  2. Enter password and click Sign In.

What is the processing fee for COBRA online payments?

Pay online via debit or credit card. Please note: There's a $20 processing fee associated with any payments made online, and setting up ACH withdrawals is a free option.

How does COBRA work when you leave a job?

COBRA coverage lets you pay to stay on your job-based health insurance for a limited time after your job ends (usually 18 months). You usually pay the full premium yourself, plus a small administrative fee. Contact your employer to learn about your COBRA options.

Are COBRA payments tax deductible?

Are my COBRA premiums deductible? Yes they are tax deductible as a medical expense. There isn't necessarily a “COBRA Tax Deduction”. You can only deduct the amount of COBRA medical expenses on your federal income tax in excess of 7.5% of your Adjusted Gross Income and then only if you itemize deductions.

How to pay for a COBRA?

Payment can be made by check (personal check, business check, cashier check, bill pay check from a financial institution of your choice), money order, recurring electronic payment, one-time electronic payment, debit card, or credit card.

How does an employer pay for COBRA?

Some employers may subsidize or pay the entire cost of health coverage, including COBRA coverage, for terminating employees and their families as part of a severance agreement.

Do I have to pay COBRA right away?

Your Initial COBRA premium must be paid within 45 days of the time you elect COBRA coverage. 1 Your COBRA administrator will consider the date your COBRA election form is postmarked to be the date you elect COBRA. That postmark sets your 45-day clock ticking.

How often are COBRA premiums paid?

The plan must allow qualified beneficiaries to pay the required premiums on a monthly basis if they ask to do so, and may allow payments at other intervals (for example, weekly or quarterly). Plans cannot require qualified beneficiaries to pay a premium when they make the COBRA election.

Is COBRA coverage worth it?

If you're close to meeting your deductible on your current insurance plan and you have high health care costs, it may be worth it to temporarily stay on your COBRA plan,” explains Donovan. The same holds true if you're far into your employer plan's year and have already met your deductible.

How long does it take for COBRA benefits to kick in?

Assuming one pays all required premiums, COBRA coverage starts on the date of the qualifying event, and the length of the period of COBRA coverage will depend on the type of qualifying event which caused the qualified beneficiary to lose group health plan coverage.

Who is responsible for sending a COBRA notice?

Under COBRA, group health plans must provide you and your family with specific notices explaining your COBRA rights. Plans must also have procedures for how COBRA continuation coverage is offered, how qualified beneficiaries may elect continuation coverage, and when it can be terminated.

How much does COBRA typically cost per month?

COBRA coverage is not cheap.

A COBRA premium can cost on average $400 to $700 a month per person.

Who pays for COBRA after termination?

(California passed a similar law known as “Cal-COBRA.”) Under COBRA, the group plan health insurance plan made available to terminated workers provides the exact same benefits as they would receive if they were still a member of the group, except that the employees have to pay the employer's cost of providing the ...