Migliaccio & Rathod LLP is investigating whether Benefit Resource (BRI), an affiliate of Inspira Financial, improperly charges consumers additional fees when they pay to maintain their health insurance coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA).
COBRA lets people keep their employer-sponsored health insurance for a limited time after leaving a job or losing coverage. However, people who continue coverage through COBRA generally must pay the full cost themselves, which can make monthly premiums expensive.
According to BRI’s published payment instructions, consumers who pay their COBRA premiums online are charged an additional $20 convenience fee for each payment. This fee applies even when people pay directly from a checking or savings account. It also applies to recurring online payments.
BRI states that it generally collects a 2% administrative fee on COBRA premiums. Federal law generally limits the amount charged for COBRA continuation coverage to 102% of the applicable plan cost, including the additional 2% administrative fee. Migliaccio & Rathod is investigating whether BRI’s additional online payment fees comply with applicable law and whether consumers were clearly informed of these fees before making payments.
Why Consumers Should Be Concerned
People who continue their health insurance through COBRA may already face high monthly premiums. An additional $20 fee per online payment can increase the cost of maintaining coverage.
Migliaccio & Rathod LLP is investigating whether BRI’s additional electronic-payment fees are permitted under applicable law and whether consumers were adequately informed about these charges.
Signs You May Be Affected
- You continued your health insurance through COBRA using BRI.
- You paid your COBRA premiums through BRI’s website or mobile app.
- You were charged an additional $20 convenience or processing fee.
- You were not clearly informed about the fee before making a payment.
- You were not adequately informed about available ways to pay without the additional fee.
If you have paid COBRA premiums through BRI’s website or mobile app and were charged an additional $20 processing or convenience fee, we would like to hear from you. Please complete the contact form on this page, email [email protected], or call (202) 470-3520.