Is COBRA subsidy ending a qualifying event?

Is losing COBRA subsidy a qualifying event?

If you've previously had health insurance but lost it, that event will fall into this category. Here are some examples of events that qualify as a loss of health insurance: Losing employer-sponsored coverage. Losing COBRA coverage.

Is the COBRA Act still in effect?

While COBRA is temporary, in most circumstances, you can stay on COBRA for 18 to 36 months. This coverage period provides flexibility to find other health insurance options.

What is the 60 day loophole for cobras?

What is the COBRA Loophole 60 Days? The Cobra Loophole 60 Days allows you to defer your decision about COBRA insurance until the very last day of the 60-day period. This gives you a window of time where you don't need to pay any premiums, yet you're still covered if an emergency occurs.

Is FMLA a COBRA qualifying event?

Group health coverage that is provided under the FMLA during a family or medical leave is not COBRA continuation coverage, and taking FMLA leave is not a qualifying event under COBRA.

How to end COBRA coverage?

To cancel your COBRA plan you will need to notify your previous employer or the plan administrator in writing, requesting to terminate the insurance.

How do I claim my COBRA subsidy credit?

Request a Refund for Amounts Paid in COBRA Premiums Exceeding Federal Employment Tax Liability: The employer may claim the Credit through an employment tax refund on the applicable employment tax return, generally Form 941, Employer's Quarterly Federal Tax Return.

Can an employer subsidize a COBRA?

Employers can choose how COBRA subsidies are paid. In some circumstances, employees can pay for their COBRA premiums from their severance payments on a pre-tax basis.

What does subsidy mean in health insurance?

State. Subsidy description. California. Individuals with household incomes up to 250% of the federal poverty level (FPL) are eligible for CSRs that eliminate deductibles and reduce other out-of-pocket costs. For 2025, all Covered California enrollees will qualify for at least the Enhanced Silver 73 health plan⁵.

What happens if I elect COBRA but don't pay?

There is no grace period if you're late paying your initial COBRA premium payment. 3 If it isn't paid on time (ie, within 45 days of electing COBRA), you lose your right to have COBRA coverage; you'll have to find other health insurance options or you'll be uninsured.

Is a strike a COBRA qualifying event?

For example, a strike or a lockout is a termination or reduction of hours that constitutes a qualifying event if the strike or lockout results in a loss of coverage as described in paragraph (c) of Q&A-1 of this section. Similarly, a layoff that results in such a loss of coverage is a qualifying event.

Is a resignation a COBRA event?

In the context of COBRA, the term 'Termination' is often used broadly to refer to the end of employment, regardless of whether it was voluntary (resignation) or involuntary (dismissal).

Is cancelling COBRA a qualifying event?

No, stopping payment for COBRA coverage is not considered a qualifying event.

What is not a COBRA qualifying event?

A loss of coverage caused by an event not listed as a triggering event will not result in a right to continuation coverage under COBRA. This includes events such as a change in plan eligibility rules, failure to pay plan premiums, or an employee's decision to voluntarily drop coverage.

Is going on FMLA a qualifying life event?

In addition to medical leave, the birth of a newborn or the placement of a child in adoption or foster care is also considered an FMLA qualifying event.

How does COBRA subsidy work?

An individual is eligible for the COBRA subsidy if they experience either of the following qualifying events: An involuntary termination of employment (other than for gross misconduct). Reduction in hours, which causes an individual to lose state health, dental or vision plan eligibility.

What is a second qualifying event for COBRA?

Second qualifying events may include the death of the covered employee, divorce or legal separation from the covered employee, the covered employee becoming entitled to Medicare benefits (under Part A, Part B or both), or a dependent child ceasing to be eligible for coverage as a dependent under the group health plan.

What is the 105 day COBRA loophole?

So, if you maxed out the 60 day election period plus the 45 day payment period, you could actually go 105 days without paying for the coverage.

How long does the COBRA subsidy last?

The subsidy is available for 9 months of coverage. The subsidy does not change or extend the overall COBRA continuation coverage, which is usually 18 months from the qualifying event.

What are the disadvantages of COBRA coverage?

Is it better to use COBRA or obamacare?

ACA plans may offer significant cost savings through subsidies that aren't available under COBRA. By transitioning to an ACA plan, you can often find more affordable coverage without waiting until COBRA expires, giving you flexibility in managing your healthcare costs.