Who is responsible for collecting COBRA premiums from electing beneficiaries?

• A. The beneficiary must collect their own premiums.
• B. The plan administrator bills and collects premiums.
• C. The insurer collects premiums directly from the beneficiary.
• D. The employer pays all premiums on behalf of beneficiaries.

Answer: (B)

The plan administrator is responsible for COBRA premium collection. This administrator handles the COBRA process for the group plan—sending notices, processing elections, and billing electing beneficiaries for the monthly premium. The beneficiary then pays that amount to the plan administrator (or to the insurer/TPA if that entity is serving as administrator). The employer is the plan sponsor, not the payer collecting premiums from beneficiaries. In short, the entity in charge of administering the plan collects the premiums from those who elect COBRA.