August 18, 2021

AMERICAN RESCUE PLAN ACT UPDATE

On July 26, 2021, the Internal Revenue Service (IRS) released additional guidance in the form of 11 questions-and-answers that expand upon earlier Q&A guidance (published on May 18, 2021) addressing the COBRA premium assistance provisions of the American Rescue Plan Act of 2021 (ARPA).

IRS Notice 2021-46 addresses, among other things:

  • the availability of the premium assistance to individuals eligible for an extension who had not yet elected it; whether premium assistance for vision or dental-only coverage ends due to eligibility for other health coverage that does not include vision or dental benefits

  • the availability of premium assistance under comparable state law that limits continuation coverage to government employees

  • whether employers may claim the premium assistance tax credit if the SHOP exchange requires employers to pay COBRA premiums

  • which party may claim the premium assistance tax credit in situations involving parties other than an insurer or former common law employer providing the COBRA coverage

You can review our full compliance alert here for a summary of the additional guidance provided by the IRS or review the complete IRS Notice 2021-46 here.

HealthEquity will continue to stay abreast of this topic and – as additional guidance is available – we will advise accordingly.

June 4, 2021

American Rescue Plan Act Update

On May 18, 2021, the Internal Revenue Service released guidance in the form of 86 questions-and-answers concerning the COBRA changes introduced by the American Rescue Plan Act of 2021 (ARPA). IRS Notice 2021-31 covers a range of topics related to the COBRA premium assistance provisions of ARPA and additional COBRA enrollment opportunities afforded to certain Assistance Eligible Individuals (AEIs) during the ARPA subsidy period beginning April 1, 2021 through September 30, 2021.

  • IRS Notice 2021-31: PDF

View our full compliance alert here. And take time to review the resources above to stay informed about ARPA and the COBRA Subsidy.

HealthEquity will continue to stay abreast of this topic and – as additional guidance is available – we will advise accordingly.

April 16, 2021

American Rescue Plan Act Update

On April 7, 2021, the DOL released guidance in the form of Frequently Asked Questions regarding the COBRA subsidy, as well as model notices that can be used when administering ARPA’s COBRA subsidy requirements. The DOL’s guidance includes:

  • FAQs about COBRA premium assistance under the American Rescue Plan Act: PDF

  • Model General Notice and COBRA Continuation Coverage Election Notice: PDF

  • Model Notice in Connection with Extended Election Period: PDF

  • Model Alternative Notice: PDF

  • Model Notice of Expiration of Premium Assistance: PDF

  • Summary of COBRA Premium Assistance Provisions under the American Rescue Plan Act of 2021:  PDF

View our full compliance alert here. And take time to review the resources above to stay informed about ARPA and the COBRA Subsidy.

HealthEquity will continue to stay abreast of this topic and – as additional guidance is available – we will advise accordingly.

March 12, 2021

AMERICAN RESCUE PLAN ACT

On Thursday, March 11, 2021, the President signed the American Rescue Plan Act (the 'Act') which includes continuation coverage premium assistance for certain individuals and their families receiving COBRA due to an involuntary termination of employment or a reduction of hours. The Act also includes a temporary change to Dependent Care Flexible Spending Accounts (DCFSAs).

HealthEquity continues to review the legislation and has solicited guidance from several regulatory authorities to learn how to inform our clients about next steps. Once we receive concrete guidance, we will be sure to update all clients directly. You should expect additional communications from HealthEquity over the coming weeks.

HealthEquity/WageWorks’ comments requesting guidance from the agencies can be viewed here.

Clients, brokers and partners should watch the webinar where our compliance team shares the impacts the most recent legislative changes may have on benefits plans.

COVID Relief 2021: Understanding the Impact on Your Benefits Plans
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