(California) Not clear if employer stopping paying for COBRA qualifies as life event
Hi all.
My wife was let go in February, kept technically employed with full benefits until end of April. And then employer paid COBRA for 4 months, ending in August. So we have been under COBRA for almost 4 months. Next month is when we lose coverage and we thought it was a qualified event. But, going through CoveredCA it seems it might not be the case. Healthcare.gov, on the other hand, makes it seems it should qualify. Between the 2 resources the info is not cristal clear. I was not able to reach out to CoveredCA via phone.
Covered California says:
Canceling COBRA to Enroll in Covered California
If you enroll in COBRA coverage and the special-enrollment period described above lapses, you cannot cancel your COBRA coverage and enroll in a Covered California health plan until 1) your COBRA coverage is exhausted, 2) you have a different qualifying life event for special enrollment, or 3) the next annual open-enrollment period.
If you stop paying your COBRA premium and lose coverage, you will not be eligible for special enrollment through Covered California. You will only qualify for special enrollment if:
Someone else responsible for sending your COBRA premium payments (for example, your former employer) fails to do so on a timely basis.
You move out of the plan coverage area, and there is no COBRA continuation coverage available.
You reach the plan’s lifetime limit for benefits.
It does mention "someone else responsible for payments will stop making payments". In a way, that's what's going to happen.
Heathcare.gov:
If your COBRA costs change because your former employer stops contributing or you lose a government subsidy (like COBRA premium assistance) and you must pay full cost:
Outside Open Enrollment: Yes, you can change — you qualify for a Special Enrollment Period.
If indeed, we are not eligible, I don't understand why the government would want to punish formerly-employed people that were offered by former employer to extended their free health coverage. It's better than using the government resources with subsidies. If we don't qualify, it will cost us $2000+ a month until next enrollment period.
Please let me know what you understand from all this. I am worried about sending the application regardless given there are several warnings of penalties.
BTW, I am also unemployed since January and have been in my wife's coverage.
Thank you
submitted by /u/lots_stuff_happening
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