I've been getting health insurance through Cobra from my last job. I now have a new job, and was told today by benefits person that I can't remain on Cobra since I am now eligible for health insurance through new job. Is this true?

As far as I can tell, COBRA is only available to those otherwise ineligible for group coverage. If you're eligible for insurance at your new job, you are no longer eligible for COBRA.

As TPS said, my understanding is that COBRA eligibility ends when you become eligible for group coverage. However, since you are in the great state of MA, there are other options to support our health care mandate. Have you looked into the https://www.mahealthconnector.org/portal/site/connector/ or http://www.mass.gov/?pageID=eohhs2agencylanding&L=4&L0=Home&L1=Government&L2=Departments+and+Divisions&L3=MassHealth&sid=Eeohhs2? Also, you may already be aware of this, but if you do not keep health care coverage you will probably be penalized on your state income taxes.

Is it eligibility for coverage or enrollment in coverage?

Pretty much.

COBRA is essentially keeping you on your old employer's plan except you are paying for all of it instead of your company subsidizing you as an employee. So, yes, once you have a new employer, you can no longer be covered by your old employer's plan.

Thanks for your help. Damn, not what I planned for! This definitely mucks things up for me.

I am no expert, but I think the issue here isn't keeping your old employer's plan through COBRA (I think you can continue to do that for 18 months from the date you left your old employer regardless of your new employment situation) the issue is keeping your subsidy. So if you wanted, you could probably pay the $640 full price for the old plan, but being offered group coverage at your new employer will make you ineligible for the subsidy.

It is eligibility for coverage, but from what I've learned from benefits lady, I'm not eligible to continue to get Cobra as long as I'm eligible for insurance through the new employer. The real issue is being eligible for the subsidy, which I'm not, as long as I'm not getting Cobra.

Per my wife (who works for the US Dept. of Labor), you are not required to drop COBRA and take your new employers health insurance. Mere eligibility does not end COBRA. It only ends once you actually take and enroll in another group policy. You can ride out your COBRA for the full 18 months, and once they are up you get a 30 day special enrollment right into your new employers health plan. For more information, you should call the EBSA Toll-free hotline at 1.866.444.EBSA (3272). You'll get a live person to help you (my wife is one of them!) What's unclear is if you'll still be eligible to receive the health subsidy. If this is being paid through ARRA funds, then mere eligibility for other health insurance ends the subsidy. You should make sure to talk to the EBSA person about this (you will be routed to the Boston office, who are familiar with MA issues). Good Luck!