Tax credit question: Spouse of T65 employee loses group coverage

[yorkriver1]

Working spouse turned 65, now dropping employer coverage mid 2022, going on Medicare supplement + drug plan. Whether it matters, added info: the employer is more than 20 employees.
My question is, does the working spouse dropping employer coverage at age 65 so they can get Medicare plan coverage, but continuing to work at the same job create a qualifying event for the under 65 spouse to go on ACA coverage with or without a tax credit. The tax credit would depend on the ACA rules and the combined income. The under 65 spouse is self employed.

 

[Yagents]

Working spouse, turning 65, and staying on group plan is not an ACA SEP for the younger spouse

 

[yorkriver1]

Working spouse, turning 65, and staying on group plan is not an ACA SEP for the younger spouse

Thanks for responding!
What I was trying to say since the turning 65 employed (and continuing to work at that job) spouse is dropping their group coverage (and going on individual Medicare coverage), now does that situation become a qualifying event for the left behind under 65 spouse to get ACA with a tax credit. I know that may seem blindingly obvious, it's been a long week. I don't see how the dropping of that coverage could allow the younger non employee spouse to continue on the group except for COBRA, and normally when newly COBRA eligible it seems that ACA can be an option. The involuntary loss of coverage seems to be part of eligibility and I don't know how that could apply or not in this situation.

 

[DonP]

I would think it creates a sep of loss of coverage . But what income does she make and him if they both continue to work ? They take both incomes and file it husband wife with 2 persons for the subsidy even though only one getting .

 

[Helpico_Insure]

Thanks for responding!
What I was trying to say since the turning 65 employed (and continuing to work at that job) spouse is dropping their group coverage (and going on individual Medicare coverage), now does that situation become a qualifying event for the left behind under 65 spouse to get ACA with a tax credit. I know that may seem blindingly obvious, it's been a long week. I don't see how the dropping of that coverage could allow the younger non employee spouse to continue on the group except for COBRA, and normally when newly COBRA eligible it seems that ACA can be an option. The involuntary loss of coverage seems to be part of eligibility and I don't know how that could apply or not in this situation.

Working spouse turned 65, now dropping employer coverage mid 2022, going on Medicare supplement + drug plan. Whether it matters, added info: the employer is more than 20 employees.
My question is, does the working spouse dropping employer coverage at age 65 so they can get Medicare plan coverage, but continuing to work at the same job create a qualifying event for the under 65 spouse to go on ACA coverage with or without a tax credit. The tax credit would depend on the ACA rules and the combined income. The under 65 spouse is self employed.

Yes, It creates SEP for ACA for the under 65 spouse. Doesn't matter where they will shop: at the Marketplace or directly, they need to prove the SEP. Its longevity is 2 months.

 

[yorkriver1]

Thanks all for responding!
I did call and reach a level 2 rep at healthcare. gov. Same answer, SEP. I have years of experience with ACA, just a bit of a twist with the working spouse T65 who drops coverage & keeps working generating the SEP is one I haven't had. The dependent spouse losing group is valid in this situation. Fortunately the spouse needing ACA coverage is T65 next spring, so short term situation.

 

[LostDollar]

Thanks all for responding!
I did call and reach a level 2 rep at healthcare. gov. Same answer, SEP. I have years of experience with ACA, just a bit of a twist with the working spouse T65 who drops coverage & keeps working generating the SEP is one I haven't had. The dependent spouse losing group is valid in this situation. Fortunately the spouse needing ACA coverage is T65 next spring, so short term situation.

Caveat, not an agent.

As you suggested above, I would think cobra would also be an option, so cobra or aca, whichever works best for the person.

Also, if the group coverage has dental and vision separated from the health coverage, even if nonworking spouse chooses aca health, have them check on cobra dental and vision. I was able to do cobra dental and vision only for 18 months as the non-employee spouse. The cobra dental was cheaper and better than the non-group coverage I could get. Not sure how cobra vision would compare to something like vsp.

 

[Helpico_Insure]

Thanks all for responding!
I did call and reach a level 2 rep at healthcare. gov. Same answer, SEP. I have years of experience with ACA, just a bit of a twist with the working spouse T65 who drops coverage & keeps working generating the SEP is one I haven't had. The dependent spouse losing group is valid in this situation. Fortunately the spouse needing ACA coverage is T65 next spring, so short term situation.

Still ACA subject and until spring you have almost 1 year. This case is very simple actually.