Which action helps prevent loss of COBRA coverage due to nonpayment?

• A. Pay the required premiums within the grace period.
• B. Ignore notices and wait for automatic reinstatement.
• C. Request an extension from the insurer after six months.
• D. Change jobs to avoid COBRA.

Answer: (A)

Timely premium payments during the grace period keep COBRA coverage in force. After electing COBRA, you must pay the required premiums, and most plans provide a grace period (often about 30 days) to make a late payment. If you pay within that window, the coverage continues without a break. If payment isn’t received by the end of the grace period, the plan can terminate COBRA coverage, sometimes retroactively to the end of the grace period, which means you’d lose benefits.

Ignoring notices or waiting for automatic reinstatement isn’t a reliable way to preserve coverage, and extensions are not guaranteed or standard after six months. Changing jobs to avoid COBRA doesn’t address the requirement to maintain premiums for the continuation coverage you elected.

So, the action that best prevents loss of COBRA coverage due to nonpayment is paying the required premiums within the grace period.