The American Rescue Plan Act of 2021 (ARP) provided temporary premium assistance under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), during the COVID-19 emergency to help eligible individuals continue their health benefits. The premium assistance applies to periods of health coverage on or after April 1, 2021 through September 30, 2021. An employer or plan to whom COBRA premiums are payable is entitled to a tax credit for the amount of the premium assistance. The Internal Revenue Service has issued Notice 2021-31 to provide guidance on the application of ARP relating to COBRA continuation coverage and information regarding the calculation of the credit.
The 41-page notice is posted on the IRS’ website: https://www.irs.gov/pub/irs-drop/n-21-31.pdf
Posted 5/26/21