QUESTION

I’m eligible for COBRA but haven’t elected it yet. Does that affect my eligibility for marketplace subsidies?

Individuals with no coverage | Eligibility for Premium Tax Credits and Cost-Sharing Reductions
ANSWER

It depends on whether you are still working. If you are eligible for COBRA because you lost your job, just being eligible for COBRA doesn’t affect your eligibility for premium tax credits or cost-sharing assistance if you enroll in a marketplace plan. However, if you are eligible for COBRA because your hours at work were reduced and you are no longer eligible for your job-based plan, you will have to show that your COBRA is unaffordable or fails to meet minimum value in order to qualify for premium tax credits. (26 C.F.R. § 1.36B-2(b) and (c); 78 Fed. Reg. 25909, May 3, 2013; IRS, Questions and Answers on the Premium Tax Credit).

Individuals with no coverage
Individuals with coverage
Coverage for small employers
Post enrollment issues