There has not been any clear guidance yet on this issue, but here is what we know, or in some cases what we believe is most likely.

1)  An ex-employee eligible for COBRA will most likely be eligible for coverage on the exchange.  They may be eligible for a subsidy as well, and should speak to their tax professional.  The question for the participant is which plan is more cost-effective, considering premiums, deductibles and out-of-pocket costs.

2)  If they elect COBRA, they will most likely not be able to go back on the exchange until the following years open enrollment period (10/15-12/7 each year).

3)  If they elect the exchange they will lose their COBRA option after the 60 day election period has passed.

4) The employee doesn’t pay their COBRA premium and loses coverage, what happens. There is no guidance on this issue but based on current interpretations, while they may be eligible for a subsidy, they may have to wait for the exchange open enrollment period.  It is unclear if being dropped from COBRA because of non-payment is a qualifying event for a Special Enrollment Period.

More, whenever we get it!