COBRA: Termination of Coverage due to Lack of Premium payment

Editor's Note: In response to the COVID-19 pandemic, the U.S. Department of Labor (DOL) released a new final rule that temporarily extended the period in which eligible employees can elect COBRA health insurance coverage, and the deadline for them to begin making COBRA premium payments. In late January 2023, the Biden administration announced that the COVID-19 public health emergency and national emergency will end May 11, 2023. For information on how this impacts the extension periods for COBRA, see New Guidance Helps Employers Navigate End of the COVID-19 Emergency Orders.

[Date]

Dear [Name],

According to our records, you elected COBRA continuation coverage beginning [date]. As stated on the election form you submitted (copy enclosed), you are required to make periodic payments in full for each COBRA coverage period. Although these periodic payments are due on the first day of the month for that month's coverage, you have a grace period of 30 days after the day of the coverage period to make the payment. Your continuation coverage is provided for each coverage period as long as payment is made before the end of the grace period. If you fail to make a periodic payment before the end of the grace period for that coverage period, you will lose all rights to continuation coverage under the plan.

As of this date, we have not received your COBRA premium payment for the month of [month]. As the grace period of 30 days has expired, please accept this letter as notice that your COBRA continuation coverage is terminated as of [last coverage date for last month for which payment was received]. If you have questions, please call me at [telephone number].

Sincerely yours,

[Name]

[Job title]