IRS Issues Details for Employers on Recouping COBRA Subsidies

The Internal Revenue Service Tuesday issued information on how employers can calculate the credit they will receive for providing former employees with coverage under COBRA.

The American Rescue Plan provides a 100% subsidy for premiums for health plans continued by people who have lost their jobs or had their hours reduced. The Consolidated Omnibus Budget Reconciliation Act allows former employees to keep the coverage temporarily, but normally they have to pay the full cost, which is expensive.

Employers have been waiting for guidance from the IRS on how they can get reimbursed for providing the subsidy. The subsidy ...