IRS Says Free Health Benefits Extend to Workers on Longer Leave

July 26, 2021, 9:16 PM

Employees eligible to continue company-sponsored health insurance for reasons like disability can still get six months of free coverage even if they opted out initially, the Internal Revenue Service said Monday.

The free health coverage extends from April 1 through Sept. 30 under the American Rescue Plan, a provision enacted to help workers who lost jobs or hours due to the pandemic.

Employees and former employees who qualify for longer coverage under the Consolidated Omnibus Reconciliation Act (COBRA) can claim the six months of free coverage if they were terminated or had their hours reduced, the IRS said. The coverage ...

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