How do I pay my COBRA bill?
Asked by: Don Cormier | Last update: August 8, 2025Score: 4.4/5 (48 votes)
How do I make my COBRA payment?
Navigate to the Payment Summary tab under Payment Info on the left-hand side of the page. Click "Make Payment." 2. Select "Payment Method" from the Make a Payment drop-down list and choose to pay by credit or debit card or by checking or savings account, and then click "Next."
Do you pay COBRA directly?
COBRA premiums may be paid to the employee, and the employee would pay the insurance company directly. Since there is no guarantee that the employee will use the funds to pay the premiums, the funds are considered wages and subject to applicable taxes.
What is a typical COBRA payment?
Average Cost of COBRA Insurance in 2025
COBRA is a continuation of your most recent employer group health plan. According to Value Penguin, the average cost of individual health insurance in the United States is $537/month in 2025.
How long does it take to make a COBRA payment?
You can be required, however, to make an initial premium payment within 45 days after the date of your COBRA election (that is the date you mail in your election form, if you use first-class mail). Failure to make any payment within that period of time could cause you to lose all COBRA rights.
How to Pay COBRA with a Bank Account
How late can you be on a COBRA payment?
The COBRA law allows for a 30-day grace period, after the premium due date, for paying or postmarking your premium.
What happens if I don't pay for COBRA?
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.
What are the disadvantages of COBRA coverage?
- COBRA can be expensive, especially compared to the premiums you were paying before your qualifying event. ...
- COBRA does not apply to all employer-sponsored health plans—in particular, those organizations with fewer than 20 employees may have no requirements. ...
- Even if you get an extension, COBRA is only temporary.
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.
What is the minimum deposit for COBRA?
What is the minimum to open an account? United States residents: $27,000 to open account. $25,000 minimum balance must be maintained in each day-trading account.
How do employers pay for COBRA?
Who pays for COBRA coverage? The employee generally pays the full cost of the insurance premiums. In fact, the law allows the employer to charge 102 percent of the premium, and to keep the 2 percent to cover your administrative costs.
How do I access my COBRA account?
- Enter Username and click Next.
- Enter password and click Sign In.
Does COBRA kick in immediately?
An employee eligible for COBRA insurance must opt for it within 60 days of their employer-sponsored insurance termination date. The coverage starts the day the previous coverage ends.
What is COBRA direct billing?
Direct billing allows certain individuals (such as retirees, employees on extended leave, etc.) to pay for ongoing group health benefits through means other than payroll deductions using a third-party administrator to manage accounts and accept premium payments on behalf of the employer.
How do I claim COBRA on my taxes?
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.
Can COBRA be done online?
Possibly. If the employer uses a third-party COBRA Administrator, they may use online accounts to manage the collection of premium payments, paperless billing and other notifications. Sometimes, an employer may manage their COBRA continuation themselves through the HR Department.
Who pays for COBRA after termination?
COBRA and Cal-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.
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.
Does insurance end the day you quit?
When you leave or are let go from a job, your health insurance either expires on your last day of work or at the end of the month of your exit, says Andy Gillin, attorney and managing partner at GJEL Accident Attorneys. For example, if you quit on July 15th, your coverage usually continues until July 31st.
How do I calculate my COBRA payment?
Using the information provided in Box 12 of your most recent W-2 form, labeled Code DD, you will find the total annual cost of your employer-sponsored health coverage. To determine your monthly COBRA premium, divide this annual amount by 12 and include any applicable administrative fees, which may be up to 2%.
Is COBRA worth the money?
But ultimately, it depends on your situation. If you're not eligible for government subsidies and the costs of COBRA and ACA are similar, or if you've used up the deductible on your employer insurance before you leave your job, it might make sense for you to do a COBRA plan.
How long can I stay on COBRA?
You can stay on COBRA for 18 or 36 Months
COBRA coverage generally lasts 18 months for the employee. However, dependents on the plan, such as a spouse or children, can be eligible for up to 36 months of coverage under certain circumstances, like divorce or the death of the covered employee.
How do I make a payment on COBRA?
- Log into your COBRA account, click make payment.
- Select payment method, click next.
- Depending on what you select, fill out credit or debit card, check or savings account information.
How late can you pay a COBRA?
You have 60 days to elect COBRA, another 45 days to make your first premium payment, and then 30-day grace periods for each monthly premium payment after that.
Do you get a refund if you cancel COBRA?
Generally, there are no refunds when you cancel your plan early. You may contact your administrator or your past employer for specific insurance payment information.