Unallocated COBRA Balances Explained

There can be a few reasons for unallocated balances in your COBRA or Retiree accounts. We've included explanations for the most common reasons.
Written by Taylor Byas
Updated 6 months ago

Unallocated COBRA balance explanations:

  1. If a participant has paid more than the due amount for the upcoming month, their account will have the difference between the amount due and the amount paid applied as an unallocated balance. This may result in partial payment notices for future payments until the difference is paid and there is no longer any unallocated balance remaining. In some cases, no further payment may be needed if the participant has overpaid their premiums beyond the last day of COBRA coverage.
  2. In cases where the period for COBRA coverage has ended, an unallocated balance of any overpaid amount will be displayed on the account and should be refunded to the participant within 7-10 days after the last day of the COBRA coverage date.
  3. When the amount paid is less than the amount due, the funds are applied to the account as an unallocated balance until the remaining amount for the month’s premium is paid. 
  4. Participants who submitted a COBRA Request for Service form to end their coverage early can expect a refund check for any unallocated payments within 7-10 days after the cancellation is processed.

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