Note: there is a $20 fee for one-time payments. We administer COBRA (and leave billing) internally. The COBRA premium assistance credit is not available for individuals who were involuntarily terminated after May 31, 2010. We recommend paying by ACH. In a Nutshell If you lose or leave your job, you may be able to keep your workplace health insurance through COBRA temporarily. Therefore, only in rare circumstances, such as instances where COBRA eligibility was delayed as a result of employer-provided health insurance coverage following termination, will the credit be available. If it doesn’t make sense to itemize and your total medical and dental expenses don’t hit 7.5% of your AGI, you may have another option for getting a slight tax break on COBRA premiums. ... Consumers buying insurance online are accustomed to paying by credit card, but most agents have not embraced the payment method. Compare Best Credit Cards for Insurance Premiums by Dollar Value. The same fee is applied if the QB or SPM wants to pay via ACH from a checking or savings account online as a one time payment. Did this answer your question? COBRA qualified beneficiaries (QBs) and special plan members (SPMs) are charged a $20 convenience fee for credit or debit card transactions. Where do I make my monthly COBRA premium payment? What to do if you can’t deduct COBRA insurance costs. The consequences of being late paying for COBRA can range from a bit of a hassle to permanently losing your COBRA coverage. The cost for COBRA continuation coverage varies, depending on your employer and the percentage they are willing to pay.. How Much Will It Cost? Is it possible for TPAs to accept credit cards for COBRA premium payments? If you have a health savings account, you could pay COBRA premiums out of that tax-exempt account. Generally, health insurance premiums cannot be paid from an HSA. The reason is clear: credit cards cost the merchant money, and agents have no easy way to pass that cost along to the consumer. What are the caveats? I cant find anything that states that payments must be made by check, money order, etc. Credit Cards Home Ownership ... (HSA) to pay COBRA premiums as well as medical expenses, which could significantly reduce the sting of losing … The positives? Eligible workers pay 35 percent of the premium to their former employers. Based on an average monthly spend of S$2,000, we analysed the best credit cards on the market to estimate returned value-to-consumer after 2 years, accounting for rebates and netting out annual fees. Please be advised, there is a $20 fee for one-time payments with a credit or debit card. Is there a law that states credit cards cant be used? Why is ACH the recommended option? Credit Card Payments for Premiums. COBRA qualified beneficiaries (QBs) and special plan members (SPMs) are charged a $20 convenience fee for credit or debit card transactions. The three ways to pay COBRA premiums are through ACH (linked to your bank account), credit/debit card or check. There are a few reasons why we recommend paying by ACH. The health coverage tax credit helps people pay for items associated with health coverage, such as prescription-only coverage, major medical coverage, mental health coverage, hearing coverage, and substance abuse coverage, or coverage like COBRA, insurance extended to you after you leave your job. The tax credit can cover up to 80 percent of the eligible premiums. Yes, COBRA premiums can be paid from an HSA. There are a few methods of payment for COBRA: You may pay by check, bill pay, online payments using checking/savings account (ACH) on our website, or payments can also be made over the phone. How do I make my payments for COBRA and to whom? What happens in your situation depends on whether you’re late on your initial COBRA premium payment or late with a payment for ongoing COBRA coverage. It doesn’t involve any additional fees like other payment methods. The premiums can be expensive when they’re no longer subsidized by your former employer — however, your COBRA insurance costs may be tax deductible. Yes, you can use HSA funds to pay COBRA premiums on the website by selecting the credit/debit card option. Premium payments for continuing coverage can be paid online on the member portal (cobra.healthequity.com) or on the mobile app (available in the App store® or on Google Play™) by credit card, debit card or bank transfer.