Are my COBRA premiums deductible?
Yes they are tax deductible as a medical expense. There isn’t necessarily a “COBRA Tax Deduction”. You can only deduct the amount of COBRA medical expenses on your federal income tax in excess of 7.5% of your Adjusted Gross Income and then only if you itemize deductions.
Are You Paying A Lot For COBRA?
When you elect COBRA insurance to stay on your work health plan, you pay your portion and the subsidy your employer had paid. If a third-party administrator coordinates the enrollment and billing they may add a 2% fee on top. In other words, you pay the whole premium and then some.
Affordable Temporary Health Insurance
If you are fairly healthy and still want to remain insured, alternatives to COBRA insurance may be available based on where you live. Short-term health insurance is a popular option and available in most States. This can protect you from high medical costs of new injuries or new illnesses that unexpectedly occur while allowing you to use any licensed doctor. Coverage is available up to $1 million per person. For more information and pricing, you can call us at 1-877-262-7241 or complete a free quote online.