IRS offers more insight on COBRA subsidies
The IRS is providing some added guidance about the American Rescue Plan Act’s subsidies to continue health coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, also known as COBRA.
The latest details from the IRS are included in answers to nearly a dozen questions about the COBRA subsidies that were enacted as part of the federal stimulus law signed in March. The latest IRS notice expands on prior guidance issued back in May.
The answers addresses issues related to:
Subsidy availability to individuals eligible for an extension who had not elected it.
Whether subsidies for vision or dental-only coverage ends due to eligibility for other coverage that does not include vision or dental benefits.
Subsidy availability under a state statute that limits continuation coverage to government employees.
Whether employers may claim the tax credit if the Small Business Health Options Program (SHOP) Exchange requires employers to pay COBRA premiums.
Who may claim the tax credit in situations involving parties other than an insurer or former common law employer providing the COBRA coverage.