Question
ALABAMA-
4 Questions:
1) Even though I do not have to be sent a bill for COBRA coverage, can my premium amount increase 3 times during an eight month period without notice? (I thought it was fixed for 12 month periods.)
2) Isn't there an obligation to notify me when the third party billing company changes? How else do I know where to send the premium check...even if bills are a courtesy?
3) Can my COBRA coverage be cancelled if the premium was not paid on time because I was in the hospital when it was due?
4) If I was told by the third party billing company that my coverage would not be cancelled if I mailed a check that day (and I did), and my coverage was cancelled (now they conveniently have no record of my phone call), is there anything I can do?
Thank you for the help!!!
Answer
1. They cannot single out COBRA participants for premium increases. However, if the premium for active employees goes up, so does that of COBRA participants, even if it is less than 12 months. You do not get to have your premium remain stable when it goes up for active employees. So the answer to your question is, it depends.
2.) A moral obligation? Yes. A legal obligation? No.
3.) Yes. Nothing in the law requires them to allow you to make late payments because you have been hospitalized. Would you expect the phone company or the electric company to leave your service in place if you did not pay those bills?
4.) Very likely not.