May employers offer different health coverage to individuals who are eligible for the COBRA premium subsidy?

Employers may allow subsidy assistance-eligible individuals to enroll in coverage that differs from what they held prior to the applicable qualifying event, if the coverage is also offered to active employees and has the same or a lower premium. The different coverage may not:

• be a flexible spending arrangement;

• provide only dental, vision, counseling or referral services; or

• provide coverage for services in an employer-maintained medical facility.

Employers allowing this option need to provide notice, and assistance-eligible individuals then have 90 days to enroll in the different coverage. For more about the notice requirements, see ¶42,568 .