My employer provided severance benefits, how does this effect my subsidy/premium reduction and when will the 15-month period start?
In most cases, your subsidy/premium reduction will begin on the date that you become COBRA eligible, even if you are receiving a severance package that pays all of a portion of your benefits. Example 1: You are involuntarily terminated on November 20, 2009 and lose coverage as of November 30, 2009. Your employer offers you a three month severance package which pays 100% of your benefits. You must then complete the COBRA election forms. Your 15 months of subsidy/premium reduction start at this time, and end on February 28, 2011, even though your employer pays 100% of the first three months.
