Once COBRA is elected, the enrollee has 45 calendar days from the date of election to pay all retroactive premiums to the plan or its designee. The retroactive premium payment is the premium to cover the period from the date of loss of coverage to the date of election. All claims occurring during the months of retroactivity will be held pending premium payment being made.

Once the retroactive premium is paid, future monthly premiums are due by the first of each following month. While due on the first, the enrollee will have a maximum thirty (30) day grace period following the due date in which to make these premium payments. All claims occurring during the month will be held pending premium payment being made. If the applicable payment is not made within the grace period, then coverage will be cancelled back to the end of the prior month in which a premium payment had been made. Once COBRA coverage is cancelled due to nonpayment of COBRA premiums the enrollee will not be reinstated.

Partial Premium Payment Not Significantly Less

If the plan receives a partial monthly premium that is not significantly less than the premium due, the plan or its designee will notify the enrollee of the amount of the deficiency and allow a 30-day period for payment of the deficiency amount. All claims occurring during the month will be held pending receipt of the deficiency amount. COBRA premiums are paid directly to plan or its designee.

Health Insurance Premium Payment (HIPP) Program

For Persons Eligible for Medi-Cal

The Department of Health Services may pay COBRA premiums for persons eligible for Medi-Cal, through the Health Insurance Premium Payment (HIPP) Program. For more information contact the Department of Health Services at toll free number 1-866-298-8443. This provision will only apply to COBRA premiums to pay for medical insurance.

For Persons Disabled by HIV/AIDS

Under the Comprehensive AIDS Resources Emergency (CARE) Act of 1990, Department of Health Services may pay COBRA premiums for persons unable to work because of a disability due to HIV/AIDS, through the Health Insurance Premium Payment (HIPP) Program. For more information contact the Department of Health Services at toll free number 1-800-367-2437. This provision will apply to COBRA premiums to pay for medical, dental, and vision insurance.

Trade Adjustment Assistance (TAA) Program

The Trade Adjustment Assistance (TAA) Program is a federal program. The TAA Program provides aid to workers who lose their employment or whose hours of work and wages are reduced as a result of increased imports or shifts in production out of the United States. Under provisions of the TAA Program, an eligible individual can receive a health coverage tax credit (HCTC) or advance payment for 65% of the applicable monthly premium to pay for COBRA continuation coverage. A special second COBRA election period is also available to eligible individuals. This aid will only apply to COBRA premiums to pay for medical insurance. For more information contact the Health Care Tax Credit Customer Contact Center at toll-free 1-866-628-4282 (TTD/TTY callers may call toll-free at 1-866-626-4282).

Alternative Trade Adjustment Assistance (ATAA) Program

The Alternative Trade Adjustment Assistance (ATAA) Program is a federal program. The ATAA Program provides aid to workers age 50 or older who lose their employment as a result of increased imports or shifts in production out of the United States and retraining may not be suitable. Under provisions of the ATAA Program, an eligible individual can receive a health coverage tax credit (HCTC) or advance payment for 65% of the applicable monthly premium to pay for COBRA continuation coverage. A special second COBRA election period is also available to eligible individuals. This aid will only apply to COBRA premiums to pay for medical insurance. For more information contact the Health Care Tax Credit Customer Contact Center at toll-free 1-866-628-4282 (TTD/TTY callers may call toll-free at 1-866-626-4282).

Current as of January 1, 2008