Are COBRA Insurance Premiums Tax Deductible?
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.
QUICK CHECK
COBRA Eligibility
Common Third-Party Administrators
Your COBRA plan may be managed by a third-party administrator. Many employers work with the following:
- WageWorks / Conexis
- BenefitConnect EHR
- Discovery Benefits / WEX
- TASC
- Employee Benefits Corp (EBC)
- Lifetime Benefit Solutions
- Navia Benefit Solutions
If you are unsure who your plan administrator is, reach out to the human resources department of the company that provided the health insurance you had.
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*Eligibility for short term medical insurance is based on age and state availability.