The COBRA subsidy began April 1, 2021 and lasts through September 30, 2021.
To be eligible, employees:
- Must have a COBRA qualifying event that is a reduction in hours or an involuntary termination of a covered employee’s employment;
- Must elect COBRA continuation coverage;
- Must not be eligible for Medicare; AND
- Must not be eligible for coverage under any other group health plan, such as a plan sponsored by a new employer or a spouse’s employer.
- If employees do not elect to receive the premium assistance within 60 days of receipt of this form, they may be ineligible for the premium assistance.
- Employers that don’t satisfy COBRA continuation coverage requirements may be investigated by the Department of Labor and may be subject to an excise tax under the Internal Revenue Code.
If employees elect COBRA continuation coverage and are eligible for the premium assistance, they cannot claim the Health Coverage Tax Credit. They also cannot qualify for a premium tax credit to help pay for coverage through a Health Insurance Marketplace for any months that they are enrolled in COBRA continuation coverage with or without the premium assistance.