Re: Re: COBRA Administrative Fees
We are not COBRA. For specific contract details about your current company policy, contact your health plan administrator.
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We are not COBRA. For specific contract details about your current company policy, contact your health plan administrator.
In Reply to: Re: COBRA Administrative Fees posted by Fred on July 19, 2010 at 08:55:49:
Fred:
You are partly correct. Plans may charge COBRA beneficiaries the same amount for the cost of coverage that active employees are charged. Usually, the COBRA premium amount includes the portion of the premium paid by the employee and the portion, if any, paid by the employer, plus a two percent administration fee. In the language of the IRS and the DOL, "the maximum allowable premium amount is 102% of the applicable premium." The administration fee may be increased up to 50% (150% of the applicable premium) in the case of a Social Security disability.
Joe
: : As an employer, can administrative fees be added to the amount that an ex-employee pays for continuing health insurance coverage? If so, what is the maximum chargeable amount?
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: COBRA law allows the employer to add a maximum 2% administrative fee to the monthly COBRA insurance premium.
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: Hope this helps,
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: Fred