MMC Benefits Handbook
Paying for COBRA Coverage
The cost to you to continue coverage is the full group rate on an after-tax basis, plus an additional two percent for administrative expenses.
If your coverage is extended from 18 to 29 months for disability, the cost to continue coverage is the full group rate, plus an additional 50% because of higher medical costs as a result of disability.
You pay monthly for your COBRA coverage.
How is the cost of my COBRA coverage determined if I am or my covered family member is totally disabled?
If you are disabled according to the Social Security Administration before you become eligible for COBRA or within the 60 calendar day COBRA election period, you are entitled to continue your COBRA coverage for a total of 29 months. Your COBRA cost is determined this way:
- For the first 18 months of coverage, your COBRA cost would be 100% of the group rate, plus an additional 2% to cover the Company's administrative expenses
- For the 11 months of extended coverage because of your disability, your COBRA cost would be 150% of the Company group rate (assuming the disabled family member is included in that coverage under the plan).
When do costs change?
Your COBRA costs may change:
- when the cost of the plan for all similarly-situated employees changes
- after you complete the first 18 months of COBRA coverage, if you are entitled to continue COBRA coverage because you are considered disabled by the Social Security Administration
- if you add or drop a family member and the coverage level changes.
You will be sent a notification of any change in the cost of your COBRA coverage.
Where do I send my COBRA payments?
Send your COBRA payments to the Company's COBRA Administrator. You should make your COBRA checks payable to Trion.
When do I have to pay for coverage?
You have to send your first payment for COBRA coverage within 45 days of your COBRA election. Your first payment has to include all of your back payments, beginning with the date you lost coverage because of a qualifying event, up to and including the month you send in your first payment. For example, if your coverage ended on June 30 and you return your election form on August 15, you have until September 30 to send in the back payment due for July, August and September, as well as October's payment. In this example, your payment would be for four months of COBRA coverage.
After you make your first payment, you have to make payments for the upcoming month's coverage by the date shown on your COBRA invoice.
What happens if I am already enrolled in COBRA and miss my payment deadline?
If you miss your payment deadline, you have a grace period of 30 days. If you do not make your payment by the end of the grace period, your COBRA coverage will automatically end and will not be reinstated.
Can I have my family members' COBRA premiums deducted from my paycheck?
No, you can't have COBRA premiums for family members deducted from your paycheck. You have to submit premium payments directly to the Company's COBRA Administrator by check.
If I am offered COBRA coverage because my status on the Marsh McLennan payroll has been reclassified as temporary from regular, can my COBRA premiums be deducted from my paycheck?
No, you can't have your COBRA premiums deducted from your paycheck. You have to submit premium payments directly to the Company's COBRA Administrator by check.
Will I be sent a monthly bill in the mail?
Yes, you will be sent a monthly COBRA bill at your last known address. However, if you do not receive the bill, you must still make payments by your due date in order for your coverage to continue. Neither the Company nor its COBRA Administrator are required to send bills for COBRA coverage.