On May 18, 2021, the IRS released Notice 2021-31, which provides implementation guidance on the COBRA premium subsidy available under the American Rescue Plan Act of 2021 (ARP). As.
Our Employee Benefits & Executive Compensation Group summarizes the IRS’s 86 Q&As about the COBRA premium assistance subsidy and offers takeaways employers can use to guide their path.
The IRS Notice 2021-31 states Assistance Eligible Individuals can receive COBRA premium assistance under the American Rescue Plan Act of 2021 ARP under conditions of reduction of hours or involuntary termination of employment, tax credit for employers and plan sponsors.
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Under the American Rescue Plan Act of 2021 ( ARPA ), a 100% COBRA subsidy is available to qualified beneficiaries who lose coverage due to an involuntary termination of employment or reduction in hours. The subsidy is available from April 1, 2021 through September 30, 2021, for individuals not eligible for other group health plan coverage or Medicare. For more information, please refer to our prior Client Alerts on the new COBRA subsidy, which may be accessed here and here.
On May 18, 2021, the IRS issued Notice 2021-31, which provides helpful guidance on a number of issues in the form of 86 FAQs. Part I of our series of Client Alerts on the new COBRA subsidy (which may be accessed here) addressed the following issues:
On May 18, 2021, the Internal Revenue Service (IRS) released Notice 2021-31 (the “Notice”) providing guidance in Q&A format on the application of the temporary COBRA premium assistance.