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On May 18, 2021, the IRS released Notice 2021-31 (the “Notice”) providing guidance on the temporary 100% COBRA premium subsidy under the American Rescue Plan Act of 2021 (“ARP”), summarized generally here. The Notice addresses how to calculate the premium subsidy and the corresponding tax credit available to premium payees, as well as the rules for claiming the tax credit.
Calculating the Tax Credit: Generally
The general COBRA rules provide that a group health plan may charge a qualified beneficiary 102% of the applicable premium for COBRA continuation coverage. According to the Notice, if the employer does not subsidize COBRA premiums for similarly situated qualified beneficiaries who are not eligible for the subsidy, then the tax credit is equal to the full premium charged to other similarly situated qualified beneficiaries for COBRA continuation coverage. Additionally, the Notice clarifies that the prem
getting 72% of their premiums subsidized by uncle sam. part of an obamacare arrangement. president trump has the ability to undo the subsidies using the office of personnel management because that s the agency president obama used to set them up. the president would be within his rights to cancel the obama rule that conferred this subsidy in congress. other americans in these exchanges are not getting employer subsidies. insurance companies are also waiting to find out if the cost-sharing reduction payments they ve been receiving to help cover low income americans will soon stop, as threatened. the court, district court in d.c., said this is an illegal payment. why should american taxpayers bail out the insurance industry? democrats don t see it as a bailout. this is about having
getting 72% of their premiums subsidized by uncle sam. part of an obamacare arrangement. president trump has the ability to undo the subsidies using the office of personnel management because that s the agency president obama used to set them up. the president would be within his rights to cancel the obama rule that conferred this subsidy in congress. other americans in these exchanges are not getting employer subsidies. insurance companies are also waiting to find out if the cost-sharing reduction payments they ve been receiving to help cover low income americans will soon stop, as threatened. the court, district court in d.c., said this is an illegal payment. why should american taxpayers bail out the insurance industry? democrats don t see it as a bailout. this is about having
that maybe it s time to end that subsidy for you guys and your staff? well, i decline the subsidy. it s not right and i don t take it because i don t think it s lawful. i think the president would be absolutely within his right to cancel the obama rule that conferred this subsidy on congress. other americans who were in these exchanges are not getting employer subsidies. it s illegal. yet, somehow congress gets a work around. i applaud the president for raising this issue. i think if he moves swiftly on it i think you would see a lot of these members and senators would want to work to repeal obamacare very quickly. steve: if he moves swiftly. it sounds like you think obamacare repeal and replacement bill is not dead. no. i don t think it can be, steve. you can t promise things for seven years, walk away from the table and then maintain these illicit subsidies while you are doing that? give me a break. steve: thank you very much for joining us on this monday. any time. steve: all