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COBRA health inc., is there incompetence my problem also?

Monroeville, PA |

I'm on COBRA, in May I was paying $498, when I got my bill for June (in May) I was informed the my rate for July it would increase to $533. I received my bill for July and I was charged $508 as was the bills for Aug. and Sept.. I received my bill for Oct., they
"corrected" the bill to $533 plus an extra $106 because they say there comp. sys. was not "up to date".. My question is since they accepted my payments as payed in full can they claim the extra money if the mistake was on there side?

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Filed under: Employee benefits
Attorney answers 3

Best Answer

Unfortunately they can retroactively charge you for the premium that was due. You were notified of the premium increase in a timely manner and they can correct the billing that was mistaken. You may be able to arrange paying the additional money in separate monthly amounts, but that is something you would have to discuss with the provider.


Yes, they are allowed to retroactively charge you a higher premium. The better question you might want to ask your self is do you really want to risk cancellation of the policy for failure to pay the premium amount? They did inform you that the amount was going to go up to $533, but they failed to bill you at that amount. Then they figured it out later on. I think you should just pay the amount of the premium.

This is not to be considered legal advice and we have no attorney/client relationship.


For the first 18 months of COBRA you can be charged 102% of the actual cost of the insurance. Make sure you are not paying more than that. If you were not billed enough then you can be charged the corrected amount subject to that 102% limit. You can lose COBRA for not paying the correct amount so work this out quickly.

More facts need to be known so do not rely on comments here until consuting with an attorney that practices regularly in this area of law.

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