Migliaccio & Rathod LLP is investigating whether isolved Benefit Services improperly charges people additional fees when they pay to continue their health insurance through the Consolidated Omnibus Budget Reconciliation Act (COBRA).
COBRA allows eligible people to temporarily continue their employer-sponsored health insurance after losing their coverage. People who continue their insurance generally must pay the full cost of their premiums themselves, which can make maintaining coverage expensive.
According to isolved Benefit Services’ published payment instructions, people who pay their COBRA premiums online may face additional fees depending on their payment method. The company lists a $1.50 fee for payments made directly from a checking or savings account and a $15.75 fee for payments made with credit cards, debit cards, PayPal, Venmo, or Apple Pay.
Isolved Benefit Service’s payment instructions also state that these convenience fees are nonrefundable, including when a payment is made by mistake. The company indicates that payment by mailed check may be available in certain circumstances.
Migliaccio & Rathod LLP is investigating whether isolved Benefit Service’s additional fees are permitted under applicable law, whether consumers are clearly informed about them, and whether people are improperly charged extra amounts to maintain their health insurance coverage.
Why Consumers Should Be Concerned
People who continue their health insurance through COBRA may already face high monthly premiums. Additional payment fees can make coverage even more expensive, particularly for people who must make payments every month.
The difference between the $1.50 bank-account fee and the $15.75 card or digital-wallet fee can also affect how much consumers pay over time. Migliaccio & Rathod is investigating whether consumers receive clear information about these charges before paying and whether practical alternatives are available.
The investigation does not assume that all payment fees are unlawful. What consumers were told and which payment options were available may be important in determining whether a particular fee was improper.
Signs You May Be Affected
- You continued your health insurance through COBRA using isolved Benefit Services.
- You made electronic payments toward your COBRA premiums.
- You were charged a $1.50 fee for a bank-account payment or a $15.75 fee for a card or digital-wallet payment.
- You were not clearly informed about the fee before completing a payment.
- You were charged a nonrefundable convenience fee for a payment made by mistake.
- You were not adequately informed about available alternative payment methods.
If you paid additional convenience fees when making COBRA premium payments through isolved Benefit Services, we would like to hear from you. Please complete the contact form on this page, email [email protected], or call (202) 470-3520.