The IRS has issued guidance on the American Rescue Plan Act provision that provides temporary premium assistance for COBRA continuation coverage and a credit to entities that maintain group health plans. The law provides a temporary 100% reduction in the premium that individuals would pay if they elect COBRA health coverage after a reduction in hours or an involuntary termination of employment. The law provides a corresponding tax credit for entities that maintain health plans, such as employers, multiemployer plans, and insurers. Notice 2021-31 provides details about calculating the credit, eligibility of individuals and other information for employers, plan administrators and insurers. Contact the Cg Team with questions. © 2021
25
May