COBRA Participant Toolkit

The Costs and Payment Rules for Continuation Coverage

How Much Does COBRA Cost?
Under most circumstances, Federal law provides that COBRA premiums be 102% of the entire cost of the benefit, e.g., 102% of the combined cost of what you and your employer were paying for your coverage when you were eligible for benefits. The options and costs are given on the election form. See example:

If you were paying $150 per month for your medical coverage and your employer was paying $1,000 per month for your coverage, the total cost of your coverage is $1,150 per month. For COBRA premiums, 102% of $1,150 is $1,173, so your COBRA cost would be $1,173 per month. Note that if the plan costs go up for everyone else, they will go up for you, too.
How Do I Pay For COBRA Continuation Coverage?
Once your enrollment has been processed, you can pay your continuation coverage payments in one of three ways:

  • The best way is to pay online. Login and review your COBRA account online. Pay your premiums securely and easily from your checking or savings account.

  • Online bill-pay is a good second choice. Use your bank's online bill-pay feature or set up scheduled direct payments through your bank.

  • By mail. It's best to send your payment from the post office and obtain a proof of mailing receipt. That way, you can prove you sent it and not risk losing coverage due to a mailing issue.

TRI-AD does not accept credit card payments at this time.

Insufficient fund (NSF) checks, rejected direct payment transactions, or other checks that cannot be cashed do not constitute payment. They are treated the same as non-payment. These situations can lead to losing your coverage, as well as additional charges by TRI-AD and/or your financial institution.
Pay Online – Secure and Hassle Free!
The safest way to pay is to log into your account and pay online from your checking or savings account. That way, you're sure your payment was received by TRI-AD. No checks, no stamps, no certificates of mailing, nothing to get lost...paying online is fast, secure, and worry-free.