Who is an Assistance Eligible Individual (AEI)?
The Notice provides further detail regarding who is an AEI for purposes of the ARRA premium subsidy. It indicates that an AEIs involuntary termination and loss of coverage must occur between September 1, 2008 and December 31, 2009. However, an AEIs election of COBRA coverage can occur after that period as long as the resulting COBRA coverage begins during that period. The Notice also clarifies that an individual can become an AEI more than once. However, if COBRA coverage is based on a qualifying event (other than an involuntary termination) that occurs before an individuals involuntary termination, the later involuntary termination does not cause the qualified beneficiary to become an AEI. For example, if an employee has a reduction in hours causing a loss of coverage but is subsequently involuntarily terminated, the individual is not an AEI. The Notice provides that a spouse or dependent child who is not covered before the involuntary termination and is added to coverage during a lat
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