Yes, an employer can pay all or part of a former or current employee’s COBRA premiums. COBRA premiums may be paid to the employee, and the employee would pay the insurance company directly.

Does COBRA subsidy apply to all employers?

The COBRA premium assistance provisions apply to all group health plans sponsored by private-sector employers or employee organizations (unions) subject to the COBRA rules under the Employee Retirement Income Security Act of 1974 (ERISA).

Who qualifies for the COBRA subsidy?

The COBRA subsidy is available to any individual who (1) had a COBRA qualifying event because of a covered employee’s reduction in hours or involuntary termination of employment and (2) is eligible for COBRA during the Subsidy Period.

Can I cancel COBRA insurance at any time?

COBRA is generally month-to-month coverage and can be terminated at any time subject to applicable plan provisions. You can send a letter to WageWorks requesting termination of your COBRA coverage or you can simply stop paying premiums and your COBRA coverage will be terminated for non-payment.

Can you get a subsidy with COBRA?

The IRS recently provided new guidance for employers on the federal government’s 100-percent premium subsidy to eligible COBRA health care enrollees, for coverage between April 1 and Sept. 30.

How are employers reimbursed for COBRA subsidy?

During the Subsidy Period, assistance eligible individuals must receive a 100% subsidy of their required COBRA premiums (including the 2% administrative fee). Employers pay 100% of the assistance eligible individual’s COBRA premiums during the Subsidy Period and will be reimbursed through payroll tax credits.

How do I get COBRA from my previous employer?

How to get COBRA health insurance after leaving your job

1. Leave a company with 20 or more employees, or have your hours reduced.
2. Wait for a letter in the mail.
3. Elect health coverage within 60 days.
4. Make a payment within 45 days.

How do I apply for COBRA after layoff?

You can reach Covered California at (800) 300-1506 or online at You can apply for individual coverage directly through some health plans off the exchange.

How do I claim my COBRA subsidy credit?

Employers claim the tax credit by reporting the credit on its federal quarterly employment tax returns (usually Form 941). If an employer’s anticipated quarterly tax credit exceeds their quarterly Medicare tax obligations, then they can use Form 7200 to request an advance of the tax credit (see discussion below).