Four things to know:
1. The American Rescue Plan provides a temporary 100 percent reduction in premiums for COBRA recipients.
2. The subsidy is intended for employees who lost health insurance because of a reduction in work hours or layoffs.
3. The subsidy is for coverage from April 1 through Sept. 30.
4. The entity to which COBRA premiums are payable, as in the employer, insurer or multiemployer plan, are entitled to a reimbursement. That reimbursement can be sought through a refundable tax credit against the entity’s share of Medicare taxes.
Read the full guidance here.
