"An employer is terminating an employee due to elimination of the position, but the elimination is not related to COVID. Would he or she be eligible for the subsidy in this situation?"
The COBRA event does not have to be related to COVID.
If an individual lost eligibility due to any reduction in hours or was terminated from employment involuntarily (position eliminated would be an involuntary termination of employment), then whatever coverage was in place the day before the triggering event would have to be subsidized from 4/1/21 until 9/30/21 (or whenever their 18-month COBRA maximum begins or ends during this 6-month period). However, if any qualified beneficiaries become eligible for other group coverage or Medicare, they do not have to be offered a COBRA subsidy.
Thus, if this employee is being involuntarily terminated from employment and that causes a loss of coverage, they would need to be notified of their right to elect COBRA and eligibility for the subsidy at least through 9/30/21, unless they become eligible for other group health plan coverage or Medicare during that time.
COMMENTS