Subsidy Coverage

ARP COBRA Subsidy

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Subsidy Coverage = 100%

Full cost of COBRA (single or family), including administrative fee (generally 2%)
Applies to all group health plan coverage (e.g., medical, dental, vision), but not health FSAs
Subsidy covers federal COBRA and state continuation coverage
For plans subject to federal Cobra, employer should pay the carrier for a fully-insured plan or should provide coverage at no cost on self-insured plan
For plans subject to state continuation, the carrier will pay for coverage

Employer Payroll Tax Credit

Employers will recover premiums not paid by Qualified Beneficiaries through a Medicare payroll tax credit
If tax credit exceeds payroll taxes due for a particular period, employer can apply for a refundable tax credit