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

COBRA vs. Group Plan

ody Q: Current employee has coverage with employer who operates under IRS Code 125. Employee is also covered under spouse’s group health plan. Spouse terminated employment and wants to elect COBRA. Employee wants to remain on spouse’s insurance due to covered diagnosis. Diagnosis is not covered under current employee’s group health plan with employer. Question 1: Can employee be covered under both plans (COBRA and Employer’s Group Plan)? Question 2: If employee cannot be covered under both plans, is it a qualifying event (under IRS Code 125) to drop employer’s group health plan and remain on spouse’s COBRA coverage?

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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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