Legal Question in Insurance Law in Florida

Cobra Insurance

I believe I read that companies that offer Cobra Insurance can charge 102% of costs to the insured ex-employee. Does this mean they can charge a 2% premium or double their cost to the insured?

Thank you


Asked on 11/02/05, 6:57 pm

1 Answer from Attorneys
Kelly Henderson

Re: Cobra Insurance

The employer can pass on to the former employee the full cost of insurance plus a 2% handling fee. The employer does not have to contribute to the cost of insurance. The employee does not pay double the cost of insurance. However, because the employee may have only been paying a portion of insurance costs while employed (with the employer paying a portion) the employee on COBRA may see a large increase in their premiums.

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Answered on 11/03/05, 11:16 am


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