I got laid off and am on that COBRA subsidy. Now I find out that my subsidy is being cancelled because I can go onto my wife’s employer’s coverage. The difference in premium is substantial; on my own COBRA, my subsidized premium is $200 a month. My wife’s employer makes her pay for ALL of my coverage and the cost is $700 a month! Can I just keep on the subsidy and not mention that my wife could cover me?

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jul 16, 2021

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You answered the questionnaire provided by the Department of Labor when you got the subsidy in the first place. If you fail to inform the Feds of your status change (no longer eligible for subsidy if you can go onto another employer-sponsored plan, regardless of the price), you will owe back premiums plus tax penalties. Who will find out and charge you these fees? The I.R.S. if you are audited. No employer is involved in this paperwork: what you say is between you and the Federal government auditors.

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