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IRS Clarifies Health Coverage Extensions for Laid-Off Workers

Oct. 6, 2021, 8:19 PM

The Internal Revenue Service on Wednesday clarified the application of extensions of COBRA election and premium payment deadlines affected by the Covid-19 outbreak.

The notice (2021-58) for Consolidated Omnibus Budget Reconciliation Act (COBRA) deadlines, which apply to employer-sponsored health insurance that employees can extend after losing their jobs, said the delay for electing the coverage and making initial and subsequent premium payments generally run concurrently.

The American Rescue Plan Act provided premium relief from paying the high premiums that laid-off workers normally must pay under COBRA from April 1 through Sept. 30. Employee benefits attorneys and ...

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