We are not COBRA. For specific contract details about your current company policy, contact your health plan administrator.
In Reply to: Is requiring a security deposit illegal? posted by Elijah on February 24, 2003 at 09:01:40:
: Hi. I worked for a somewhat shifty dotcom that was always in danger of filing for bankruptcy. When I was laid off I was told that I need to pay the monthly Cobra premium plus a month's security deposit. Is it legal for them to require the deposit? I worry because apparently they almost went under a couple of months ago, and I'm sure I wouldn't have seen my deposit again.
hmmmmmmmmmmm now THAT sounds shady!! I have never heard of any such procedure. It is totally up to you (the ex employee) to pay your premiums monthly and in the time period required.
COBRA provides that qualified beneficiaries have 45 days from the date of the COBRA election to pay the initial premium and 30 days from the due date to pay all other monthly premiums. The due date is generally the first of the month, allowing for a payment to be received prior to the end of that month.
A qualified beneficiary may elect COBRA coverage at any time within 60 days after the date plan coverage terminates, or, if later, 60 days after the date of the notice to the qualified beneficiary from the plan administrator. The 60-day period permits a qualified beneficiary to adopt a "wait-and-see approach" to continued coverage, and then elect if and when medical care is required during the election period. If the plan administrator has not sent the notice of qualifying event, the election period remains open. The 60-day period is a minimum. Election of the benefit during this 60-day period provides for coverage retroactively to the date the group health coverage was terminated and premiums will be expected to be paid for the full period.
Hope this helps and hope you didn't give them any money especially if they went under!