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COBRA Premiums

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luckyone

Junior Member
What is the name of your state (only U.S. law)? Michigan

I've been receiving Cobra benefits since 9/2008. I just received a letter saying my Cobra premiums were being increased as of 7/2009. I was a UAW member, and part of the last contract was there would be no premium increases. Can a company increase a Cobra premium even if the employees have had no increase?

thanks
 


cbg

I'm a Northern Girl
How do you know that the employees received no increase? It would be extremely rare for there to be no increase at all within a calendar year period.
 

luckyone

Junior Member
I still talk to several people that work at the company. No one has paid any increase in there benefits, nor have they received any notices.
 

ShyCat

Senior Member
If the premiums did not increase for the employees, then it seems reasonable to conclude that the employer absorbed the entire premium increase. Since COBRA premiums are based on the entire premium (not just the employee's share), an increase in the employer's share will increase the COBRA premium.
 

pattytx

Senior Member
Good catch, shykitty. ;) It would indeed be unusual for the full cost of health insurance to not increase annually. Employers are ecstatic if they have just a 5% or so increase.
 

cbg

I'm a Northern Girl
Good catch indeed - I missed that completely. :eek:

If that is the case, then the COBRA premium could well be increased.

And the two most common dates for premium increases are January 1 and July 1.
 

racer72

Senior Member
No longer employee of company = no longer entitled to benefits of current employees working under union contract.
 

cbg

I'm a Northern Girl
Oh, I agree with that, racer.

My mistake was in forgetting that there could have been an increase in the premiums without it being passed on to current employees.
 

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