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IRS Clarifies ARPA COBRA Premium Assistance – FAQs and Answers

The Internal Revenue Service (IRS) recently published Notice 2021-31, with an extensive list of clarifications for the COBRA subsidy approved by the American Rescue Plan Act (ARPA). Subjects addressed in the Notice include Assistance Eligible Individuals (AEIs), involuntary termination of employment, furloughs, coverages eligible for the subsidy, and much more. The following questions and answers highlight frequently asked questions. This article is not intended as legal advice. Please contact your qualified benefits counsel if you

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ARRA vs ARPA: Comparing COBRA Subsidies and Administrative Challenges

In the world of employer-sponsored benefits, COBRA subsidies have been the hot topic since the American Rescue Plan Act (ARPA) passed in March 2021. Not only does ARPA directly affect people who have lost their jobs since March 2020, but it also has a significant impact on how employers and COBRA administrators are handling the surge in COBRA eligibility over the past year. ARPA has drawn comparisons to the American Recovery and Reinvestment Act (ARRA)

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ARPA COBRA Subsidy Frequently Asked Questions (FAQs)

On Thursday, March 11, President Biden signed the  American Rescue Plan Act (ARPA) of 2021. Among other features, ARPA provides full COBRA subsidies under specific circumstances and creates significant additional COBRA enrollment eligibility. The following is a list of common ARPA COBRA subsidy frequently asked questions (FAQs). This is not intended to be legal advice. Please contact your benefits counsel if you need additional guidance. ARPA COBRA Subsidy FAQs Are all COBRA-standard Qualifying Events (QEs) eligible

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ARPA is Approved: COBRA Subsidies and DCAP Increase Part of Legislation

President Biden signed The American Rescue Plan Act (ARPA) of 2021 into law on Thursday, March 11, 2021. In addition to stimulus checks and child tax credits, ARPA features full COBRA subsidies for a limited time and an increase in the maximum contribution limits for people who use Dependent Care Assistance Plans (DCAP) through their employer. Learn more below. COBRA Subsidies Under ARPA Under very specific circumstances, the ARPA legislation provides full COBRA subsidies from

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HRA vs HSA: Examining the Similarities and Differences

Do you know the difference between a HRA vs HSA? The key difference between the two is that an HRA is employer-owned whereas an HSA is employee-owned. With an HSA, the employee keeps the account and can transfer it when he or she changes jobs. Account holders may also invest their HSA funds.

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Health FSA and DCAP Carryover Rules Approved for 2021

In December 2020, Congress passed the Consolidated Appropriations Act, 2021 (CAA), a $900 billion COVID stimulus bill. The legislation was aimed at helping Americans cope with pandemic-related challenges. Along with stimulus payments and other financial provisions, the bill also included modified carryover and dependent rules for Dependent Care Assistance Plan (DCAP) benefits, spend-down for health Flexible Spending Accounts (FSAs), election changes, and other updates. Traditionally, DCAP benefits have not included a carryover provision. However, with

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Understanding the HSA Withdrawal Penalty and Other Useful Information

Health Savings Accounts (HSAs) are a wonderful tool for saving money on healthcare expenses. When you enroll in a qualified high deductible health plan and sign up for an HSA, you contribute pre-tax money into an account then withdraw those funds for qualified healthcare expenses. When used for qualified expenses, withdrawals are tax-free. However, many HSA owners wonder if the money can be used for non-qualified expenses. If so, is there an HSA withdrawal penalty?

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How Does Medicare Enrollment Impact HSA Eligibility?

For people enrolled in a high-deductible health plan (HDHP) and have (or are considering) an HSA, some commonly asked questions include “Does Medicare Enrollment Impact HSA Eligibility?” Here are the answers to this question and others.

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Are We at Risk of a COBRA Avalanche? COVID-19 COBRA Compliance and Other Concerns for Benefits Administrators

Since the COVID-19 outbreak began in the United States, jobs have been lost at an alarming rate. As these job losses are through no fault of the employees, they are considered qualifying events for COBRA purposes. This allows employees to apply for the continuing health insurance coverage through their employers. While Congress has passed a variety of economic stimulus legislation, most notably the CARES Act in March 2020, to help lessen the impact of COVID,

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