COBRA Premium Subsidy and 2nd Qualifying Event

[Guest AHayhow]

Does anyone have any insight into the following situation:

An employee is fired from the employer and enrolls (for him and his spouse) and pays for COBRA coverage beginning 2/1/2009. The former QB passes away on 2/15/2009 which creates a 2nd QE and allows the spouse to elect COBRA (but for the additional time (total of 36 months). Is the spouse eligible for the subsidy since the original QE was involuntary termination of employment?

[GMK]

An "Assistance Eligible Individual" (AEI) is any COBRA qualified beneficiary eligible for COBRA continuation by virtue of the covered employee's involuntary termination of employment (for reasons other than gross misconduct) occurring between September 1, 2008, and December 31, 2009.

In your example, the spouse looks like an AEI to me, and, therefore, is eligible for the subsidy.

Keep in mind, too, that the subsidy is available for no more than 9 months.