On May 18, 2021, the IRS issued Notice 2021-31, a guidance document on the American Rescue Plan Act (ARPA) subsidy for continuation health coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).
Among the topics covered by the 40-page Notice are:
- Eligibility for COBRA premium assistance
- Reduction in hours
- Involuntary termination of employment
- Coverage eligible for COBRA premium assistance
- Beginning and end of COBRA premium assistance period
- Extended election period
- Extensions under the Emergency Relief Notices
- Payments to insurers under federal COBRA
- Comparable state continuation coverage
- Calculating and claiming the COBRA premium assistance credit
For more information on these FAQs, watch our updated COBRA webinar here.
