American Rescue Plan Act of 2021’s COBRA Subsidy Ends September 31. What’s next?

Does My Employer Keep The Same Deductibles While On COBRA?

I belonged to a private sector health insurance plan and was terminated and picked up my COBRA option. Does my former employer have to honor their contribution of $2000 to the deductible, which was part of the plan?

Generally, COBRA is a continuation of the same group health insurance that you had the day before the qualifying event. You should have the same deductibles as a similarly situated active employee. All of your accumulated amounts towards your deductible should continue as though the qualifying event had not occurred.

Tax Deductions While On COBRA

Your COBRA premiums and out-of-pocket expenses are tax deductible. The amount of deduction on your income taxes needs to be a portion of your gross adjusted income and only applies if you itemize.

Or, Save Money With Short-Term Medical 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.

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Short-Term Health Insurance is popular and available in most states to cover gaps between major medical plans.

These plans also cover COVID-19 hospitalization. After deductibles and coinsurance, many plans will have $1 million in coverage.


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