September 9, 2010

IRS COBRA Subsidy FAQs Updated

Recently, the IRS has updated its FAQs relating to the COBRA subsidy (note Q&As AE-36 and AE 38-50).  The COBRA subsidy, enacted originally on February 17, 2009, and extended several times, expired on May 31, 2010.

In the absence of an additional extension, no one involuntarily terminated after May 31, 2010 can qualify for the subsidy.  However, individuals currently receiving the subsidy can continue to receive the full complement of the subsidy, up to 15 months, assuming they stay otherwise qualified. 

The IRS has updated its FAQs to reflect changes in the law since its initial enactment.  The updates do not break any new ground, so to speak; but are, nevertheless, a good resource if issues or questions arise for individuals still receiving the subsidy. 

On a related note, individuals whose subsidy ends should understand that, in order to maintain COBRA coverage, the full premium must be paid.


The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations.

As required by U.S. Treasury rules, we inform you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this Benefit Beat is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any penalties that may be imposed by the Internal Revenue Service.

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