NEW COBRA Guidance
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Typically,
the rules for dropping COBRA are as follows: Yes, you can drop COBRA
inside Open Enrollment, get a Marketplace Plan and be eligible for tax
credits/subsidies even if your COBRA hasn't expired. No, you can't do
the same thing outside of Open Enrollment--if you voluntarily drop COBRA
outside of Open Enrollment, you typically are not be eligible for a
Special Enrollment Period, so you couldn't get into a Marketplace plan,
without a separate qualifying life event. If your COBRA expired outside
of Open Enrollment, you WOULD be eligible for a Special Enrollment
Period and thus could also be eligible for tax credits/subsidies.
But Wait: New Guidance:
HHS will allow current COBRA enrollees a chance to drop coverage and
enroll in a marketplace plan by way of a special enrollment period. The
last day to select and enroll in a marketplace plan through this SEP is
July 1. Anybody currently in a COBRA plan who wants to switch to a
marketplace plan should call 1-800-318-2596 and “inform the Marketplace
call center that they are calling about their COBRA benefits and the
Marketplace.” Once the person is determined eligible for the SEP, they
can either continue enrollment and plan selection over the phone, or use
an existing healthcare.gov account, or create a new healthcare.gov
account and complete enrollment online.
