IRS Issues COBRA Premium Assistance Guidance

The American Recovery and Reinvestment Act, which was enacted on Tuesday, February 17, 2009, provides federal assistance for payment of COBRA premiums to employees and covered family members with adjusted gross incomes below a maximum threshold who lost or will lose coverage due to involuntary termination of employment from September 1, 2008 through 2009.  These federal assistance provisions impose new obligations upon sponsors of single-employer group health plans, multiemployer plans and group health insurers, and the Internal Revenue Service, Department of Labor, and Department of Health and Human Services are all working on guidance necessary to implement the new law.  Today, the first of that guidance was released. 

The attached memorandum summarizes these recent developments. The new guidance is also attached.

View the memo
View the IRS Guidance