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Ok, that's what we'll do - thanks Ann. You're always so helpful. I've told her not to actually "enroll" in COBRA" when offered, and I guess we'll just proceed & find out what happens.
COBRA and The New Laws
- Thread starter 0b1kanobee
- Start date
Healthcare.gov has changed the wording on their COBRA page to give much more information about dropping COBRA during OEP or after OEP. It agrees with what I've been saying on this thread and other threads. Yes, you absolutely can drop COBRA. You DO NOT have to keep it the full 18 or 36 months. But voluntarily dropping it does not create an SEP, so drop it only in OEP. And, yes you can get a subsidy once you are no longer ENROLLED IN the COBRA coverage. Following is the link:
https://www.healthcare.gov/what-if-i-currently-have-cobra-coverage/
https://www.healthcare.gov/what-if-i-currently-have-cobra-coverage/
OK...guys I need some guidance.
I have a close friend who I wrote in Dec for January 1. He was dropping his COBRA to go indy. Even without the subsidy, it was significantly less expensive. Income wise, he is subsidy eligible. When we entered "yes" to COBRA, it kicked him out for no subsidy. We called the brainiacs at healthcare.gov and they told us "no subsidy when COBRA is being dropped". (I really don't think they lied, I think they was probably the correct answer at the time). This document disputes that. Its still OEP. How do I get him a subsidy?
Also, his son turns 26 in May, so let me know if that has any bearing. He will still qualify for a subsidy.
Thanks for your help!
I think there's another thread on this forum where you talked about that case. A few years ago, the regs came out saying ENROLLED IN is different than being ELIGIBLE FOR, and that you can drop it. But the regs were so complicated. So, the hc.gov employees probably just didn't know the rules very well.
My thought is that if you have already dropped it, you are no longer eligible for it. Then your application on the exchange should say you are not enrolled in it and not eligible for it. You probably need to appeal at this time, but someone with more working knowledge of the FFM can guide you about that issue.
My thought is that if you have already dropped it, you are no longer eligible for it. Then your application on the exchange should say you are not enrolled in it and not eligible for it. You probably need to appeal at this time, but someone with more working knowledge of the FFM can guide you about that issue.
Its already done. I'm going to call the brainiacs
@Ann....this is not how I took it before. And they definitely updated the site. Since changing the rules in the middle of the game is so much more fun for the participants! I really appreciate you finding this!
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The funny thing is that this is how the regs have stated it for years. The regs were just so confusing, and so many people were arguing that you were trapped in your COBRA coverage for its term. I kept arguing that the regs said differently, but.... who listens to me? And then when hc.gov's app and "helpful" staff led the other direction it just made it so much worse. So, thankfully, hc.gov's COBRA page brings clarity.
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so Ann lets say June 1st someone loses employment and opts for Cobra. One month in they decide hey I may get it cheaper elsewhere. Can they opt out of COBRA outside OEP? Looks like the answer is NO and they should have shopped before electing COBRA.
Joe
You nailed it. OEP is over. Dropping COBRA doesn't trigger an SEP. They had an SEP when they lost their group benefits, but once they enrolled in COBRA that SEP is over. As you said, they should have shopped before electing COBRA.
