Four things to know:
1. The American Rescue Plan provides a temporary 100 percent reduction in premiums for COBRA recipients.
2. The subsidy is intended for employees who lost health insurance because of a reduction in work hours or layoffs.
3. The subsidy is for coverage from April 1 through Sept. 30.
4. The entity to which COBRA premiums are payable, as in the employer, insurer or multiemployer plan, are entitled to a reimbursement. That reimbursement can be sought through a refundable tax credit against the entity’s share of Medicare taxes.
Read the full guidance here.
At the Becker's 5th Annual Fall Payer Issues Roundtable, taking place November 2–3 in Chicago, payer executives and healthcare leaders will come together to discuss value-based care, regulatory changes, cost management strategies and innovations shaping the future of payer-provider collaboration. Apply for complimentary registration now.
