What is COBRA?

The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) is a federal law that entitles you and your eligible family members to extend your health care coverage for a period of time after it would otherwise end.

Every benefit covered employee who has their hours of employment reduced or leaves PayPal (unless due to misconduct) will be offered the opportunity to retain benefits temporarily through COBRA for themselves and their covered dependents. Learn about other situations where COBRA would be offered.

PayPal will notify the Plan Administrator if the qualifying event is due to the end of employment or reduction of hours of employment, death of the employee, or the employee's becoming entitled to Medicare benefits (under Part A, Part B, or both). A benefit packet will be sent to you via U.S. mail for your options under COBRA.

When COBRA coverage is elected, coverage begins the first of the month following the loss of coverage.

In most cases, you and your dependents are required to pay 102% of the cost of the premium which includes an administrative fee.

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How to Pay for COBRA

As a COBRA participant, you're responsible for making timely payments to keep your COBRA account current. Failure to remit timely payment may result in termination of COBRA coverage.

COBRA invoices are sent monthly by the PayPal COBRA administrator, Your Benefits Resources™ (YBR). Invoices are mailed to the home address on file, and payment is due on the first of the following month.

You have three options for paying your monthly COBRA invoice

Option 1

Mail the payment to the lockbox address on the invoice. Detailed instructions are included with the invoice, including account number, balance due, and how to submit payment.

Option 2

Set up an ongoing direct debit process on YBR. Payments will be withdrawn from the designated checking or savings account each month.

Option 3

Use "Pay Now" on YBR to pay your monthly invoice electronically from a designated checking or savings account through a one-time direct debit process. Payments will be withdrawn within one to two business days. The "Pay Now" link can be found on the "Billings" information page in your YBR account.

If your payment is initiated by 5:00 p.m. Central time, it will be processed and posted the next business day. Payments initiated after 5:00 p.m. Central time will be processed and posted within two business days.

Please note

All valid payments that are received will be deposited. Any payments deposited after the coverage was dropped will be refunded and will not extend your coverage. If you do not include your account number on all payments, your payment may be subject to a delay in processing.


If you have any questions about paying for COBRA coverage, call the YBR Customer Care Center at 844-474-6641 and speak to a Customer Care Specialist on Monday through Friday between 5:00 a.m. and 6:00 p.m., Pacific time.

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2021 COBRA premiums

Individual only

Individual and spouse/partner

Individual and child(ren)

Individual and family

COBRA extensions due to COVID-19

On May 4, 2020, the U.S. Departments of Labor and the Treasury issued guidance to protect individuals from losing benefits by adjusting deadlines that may be missed during the “Outbreak Period,” which is the period beginning March 1, 2020 and ending 60 days after the end of the National Emergency, which has yet to be announced.

If you become eligible for COBRA and your 60-day enrollment deadline falls within the defined Outbreak Period, you may have up to an additional 60 days past the end of the Outbreak Period to enroll in COBRA.

COBRA premium payments

If you're enrolled in COBRA, you have 45 days to submit payment for your initial bill and 30 days to submit payment for subsequent bills. For payment deadlines that fall within the defined Outbreak Period, you have at least 30 days past the end of the Outbreak Period to submit your payment.

If your minimum payment isn't received by the due date, your coverage will be cancelled.

If your coverage is cancelled, any payments received after the date your coverage was cancelled will be refunded and won’t extend your coverage.

Please note: While an extended grace period will be allowed, the amount owed for applicable months of coverage will remain the same.

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