Can a third party pay my COBRA premiums?
Vita COBRA is able to accept payment from any party as long as it is a valid method of payment and your account number is clearly indicated on their correspondence. You do not need to notify Vita COBRA that a third party is paying on your behalf. Please see below for common situations that can arise when using a third-party payer.
What happens if the third party misses a payment?
You remain responsible for making and ensuring timely payments towards your monthly COBRA premium. This means if your third-party payer misses a due date, and you fail to make payment or postmark an alternate payment by the postmark deadline for that premium due date, your coverage will be terminated retroactive to the last paid-through date.
What if my third party is only paying for one line of coverage, like Medical?
If you have elected other lines of coverage, you will be responsible for sending in additional payments so that the total COBRA premium for all elected plans is postmarked within the grace period for each due date. If any payment is not received with a valid postmark date, the entire account is terminated, and you will lose all coverage under COBRA.
Who gets notified if my payment is late?
Vita COBRA will send a courtesy notice of a late payment via email—but only if you provide an email address in your profile. Vita COBRA does not provide notice of a missing or late payments via regular mail. A notice goes out via email for accounts that are not yet paid around the 20th day after the due date. This gives you 10 days—less the time the notice takes in the mail—to take corrective action and postmark a payment.
What if a payment is made during the grace period but it is received after the end of the grace period?
Premiums are credited as paid during the grace period based on the following two scenarios:
If the USPS postmark on the envelope indicates the payment was mailed within the grace period
If the ACH transaction or online payment transaction is made within the grace period.
Payments made outside of these parameters will not considered untimely and will not be accepted.
What if an overpayment is made?
Vita COBRA will apply the funds as a credit towards future months. Unused credit is refunded to you if you terminate your COBRA coverage before the credit is used up.
If a third party is paying and I terminate early, who gets the refund?
Even if a premium is paid by a third party, any refunds will be made out to the primary Qualified Beneficiary and sent to the mailing address Vita COBRA has on file. If funds are due back to the third-party under any agreement you may have made with them, you will need to coordinate with your third-party payer regarding any refunds you receive.
Since a third party is making payments, will my coverage be activated sooner?
Whether you pay your premium directly or it is paid by a third party, your coverage activation timing will be the same. Your COBRA coverage will typically be activated within 10 business days of when Vita COBRA receives your first payment. Vita COBRA cannot take action to reinstate coverage without payment of the premium.