IRS updates COBRA subsidy guidance

The IRS has updated its guidance regarding the temporary COBRA continuation premium subsidy under the American Recue Plan Act. Please see notice N-2021-46 for full details.

Key points:

The Notice provides 11 additional questions and answers covering topics such as:

  • Extended coverage periods for Assistance Eligible Individuals (AEIs) whose original 18-month COBRA continuation coverage period has expired
  • End of the COBRA premium assistance period for AEIs who selected dental or vision coverage only
  • Who is entitled to claim the COBRA premium assistance credit when state-mandated continuation coverage (Mini-COBRA) is comparable to Federal COBRA, and is a group health plan subject to both Federal COBRA and Mini-COBRA

Employers who are premium payees should review this additional guidance carefully to ensure compliance and their ability to claim the relevant premium assistance tax credit.

Disclaimer: The information contained herein is not intended to be construed as legal advice, nor should it be relied on as such. Employers should closely monitor the rules and regulations specific to their jurisdiction(s) and should seek advice from counsel relative to their rights and responsibilities.

By Megan Butz
General Counsel, HR Compliance, Checkwriters
Megan joined Checkwriters in 2020 and is responsible for reviewing, revising, and implementing internal policies of the company, advising on human resource, employment, and labor matters, and monitoring and publishing state and federal legal updates to the Checkwriters News and Compliance Center for distribution to thousands of clients around the country. Before joining Checkwriters, Megan served as a judicial law clerk for the justices of the Massachusetts Probate and Family Court performing legal research and writing, followed by private practice in Cape Cod.

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