On Might 18, 2021, the IRS issued Notice 2021-31, a steerage doc on the American Rescue Plan Act (ARPA) subsidy for continuation well being protection below the Consolidated Omnibus Funds Reconciliation Act of 1985 (COBRA). The Discover discusses the background of the subsidy and consists of 86 questions and solutions (Q&As) about its utility.
The COBRA Subsidy
The ARPA subsidy covers 100% of COBRA and state mini-COBRA premiums from April 1–Sept. 30, 2021, for sure assistance-eligible people whose work hours had been diminished or whose employment was involuntarily terminated. The subsidy is funded by way of a tax credit score supplied to employers, insurers or group well being plans, in line with the phrases of the statute.
Click here for extra details about this IRS Steering.
