AEI Drops COBRA after 2/17/09 --2nd Chance Election?

[Christine Roberts]

Individual is involuntarily terminated in November 2008, begins COBRA for himself and his dependent child as of December 1, 2008.

Coverage for both is in place on February 17, 2009, but due to costs the individual drops his coverage before receiving COBRA subsidy notice. Dependent's coverage remains in place. Does the individual get a second chance election?

[Guest SHaddon]

If they dropped the coverage due to cost before they received the subsidy notice, I would say a 2nd chance to elect should be offered.

[jpod]

Haddon: How do you square your advice with the clear language in ARRA that says the second bite at the apple is available only if the individual did not have a COBRA election in effect on the day of enactment? Perhaps the IRS Qs & As take a view similar to yours, but I don't recall that.

[Christine Roberts]

By the way - staff from EBSA in San Francisco said no second election in this situation.