Migliaccio & Rathod LLP is investigating whether Vita Consolidated Omnibus Budget Reconciliation Act (COBRA) improperly charges people additional fees when they pay to continue their health insurance through COBRA.
COBRA allows eligible people to temporarily continue their employer-sponsored health insurance after losing their coverage. People who choose to continue their insurance generally must pay the full premium themselves, plus any permitted administrative charge.
According to Vita COBRA’s published payment policies, people who make a one-time electronic payment are charged an additional $20 convenience fee. This fee applies whether they pay with a credit card, debit card, or directly from a bank account.
Vita COBRA also limits each one-time electronic payment to one month of insurance premiums. As a result, people who use this payment method to pay for several months of coverage may incur multiple $20 fees.
Migliaccio & Rathod is investigating whether these charges are permissible under federal and state consumer-protection laws, whether they were adequately disclosed to consumers, and whether consumers were improperly charged additional fees on top of their COBRA premiums.
Why Consumers Should Be Concerned
COBRA premiums can be expensive, particularly for people who have recently lost their jobs or employer-sponsored health insurance. Additional payment fees can make maintaining coverage even more costly.
Migliaccio & Rathod LLP is investigating whether Vita COBRA clearly explains its fees before consumers pay and whether practical alternatives are available for making payments without additional charges.
Vita COBRA also offers recurring bank-account payments and mailed checks. The investigation will consider whether these alternatives are available and practical for consumers.
Signs You May Be Affected
- You continued your health insurance through Vita COBRA.
- You made one-time electronic payments toward your COBRA premiums.
- You were charged a $20 convenience fee for an electronic payment.
- You incurred multiple $20 fees while paying for several months of coverage.
- You were not clearly informed about the fees or available alternative payment methods.
If you have paid health insurance premiums through Vita COBRA and incurred $20 convenience fees for one-time electronic payments, we would like to hear from you. Please complete the contact form on this page, email [email protected], or call (202) 470-3520.