On July 26, 2021, the Internal Revenue Service (IRS) released additional guidance in the form of eleven new questions and answers on various aspects of the American Rescue Plan Act (ARPA) COBRA premium assistance and extended election period provisions. The guidance focuses particularly on the process for employers claiming the premium assistance tax credit. It also addresses numerous topics, including the availability of the premium assistance to individuals who are eligible for an extension and had not elected coverage, and whether premium assistance for vision- or dental-only coverage ends due to eligibility for other health coverage that does not include vision or dental benefits.
Employers should review this additional guidance to determine if any action is needed.
Contact your Cowden representative for more information on this or other compliance issues.