Health Insurance Center
Health Insurance Q & As
Question 2 of 3 in Health Care Reform Of 2010 For Married Status
I got laid off and am on that COBRA subsidy. Now I find out that my subsidy is being cancelled because I can go onto my wifes employers coverage. The difference in premium is substantial; on my own COBRA, My subsidized premium is $200 a month. My wifes employer makes her pay for all of my coverage and the cost is $700 a month! Can I just keep on the subsidy and not mention that my wife could cover me?
You answered the questionnaire provided by the Department of Labor when you got the subsidy in the first place. If you fail to inform the Feds of your status change (no longer eligible for subsidy if you can go onto another employer-sponsored plan, regardless of the price), you will owe back premiums plus tax penalties. Who will find out and charge you these fees? The I.R.S. if you are audited. No employer is involved in this paperwork: what you say is between you and the Federal government auditors.