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IRS Guidance on COBRA Subsidy, Part II: Determining Assistance Eligible Individuals and Dealing with the Extended Election Period | Dickinson Wright

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Under the American Rescue Plan Act of 2021 ( ARPA ), a 100% COBRA subsidy is available to qualified beneficiaries who lose coverage due to an involuntary termination of employment or reduction in hours. The subsidy is available from April 1, 2021 through September 30, 2021, for individuals not eligible for other group health plan coverage or Medicare. For more information, please refer to our prior Client Alerts on the new COBRA subsidy, which may be accessed here and here.
On May 18, 2021, the IRS issued Notice 2021-31, which provides helpful guidance on a number of issues in the form of 86 FAQs. Part I of our series of Client Alerts on the new COBRA subsidy (which may be accessed here) addressed the following issues: ....

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IRS Guidance on New COBRA Subsidy Clarifies Many Outstanding Questions | Faegre Drinker Biddle & Reath LLP

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On May 18, 2021, the IRS released Notice 2021-31, a lengthy series of FAQs clarifying many aspects of the new COBRA subsidy made available under the American Rescue Plan Act of 2021 (ARPA). The FAQs address many of the issues raised by plan sponsors since the subsidy was enacted earlier this year. Although this blog post does not address every nuance of the guidance the IRS issued a whopping 86 FAQs below we point out some clarifications that might be of interest to group health plan sponsors:
Eligible Health Plans. The guidance confirms that the COBRA subsidy is available for participants under any group health plan (except health FSAs offered under a cafeteria plan), including vision-only and dental-only plans. This is true regardless of whether the employer pays for a portion of the premiums for active employees. ....

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