Is there a grace period for COBRA and Cal-COBRA payments?
COBRA allows 45-days for the initial premium to be paid. Regular COBRA and Cal-COBRA payments must be paid within 30 days. Some insurance companies, however, will cancel coverage for a payment that is only a few days late, but must reinstate if it’s within the 30-day period. “Many insurance firms don’t like COBRA folks and some companies have been involved in varying levels of fraud,” says Flanagan. “Bottom line allows a 45-day grace period for the first payment. These kinds of issues are usually quickly resolved if you challenge them.” If COBRA and Cal-COBRA are so expensive and complicated, why do we need them? Californians must rely on COBRA and Cal-COBRA because there is no state law requiring guarantee issue, which means you can get insurance no matter your health problems. “In 17 states, insurance companies can’t refuse applications because of preexisting conditions,” says Consumer Watchdog’s Flanagan. “The laws vary from state to state; some, for example, ban extra charges for p
