COBRA Deadline Extension Relief Guidance Clarified

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During the COVID-19 outbreak, Emergency Relief was issued regarding COBRA deadline extensions for electing coverage and paying premiums. The IRS issued Notice 2021-58 which clarifies the disregarded periods to elect COBRA coverage and to make COBRA premium payments generally run concurrently. The guidance provides the following rules to illustrate the applicable time frames:

• If an individual elected COBRA coverage within the initial 60-day COBRA election time frame, they will have one year and 45 days after the date of the election to make their initial COBRA premium payment.
• If an individual elected COBRA coverage outside of the initial 60-day COBRA election time frame, they generally will have one year and 105 days after the date the COBRA notice was provided to make the initial COBRA premium payment.

The guidance also references the interaction of the Emergency Relief with the COBRA subsidies that were made available for certain eligible individuals under the American Rescue Plan.

Employers should carefully review the guidance and ensure their ongoing compliance with the Emergency Relief as clarified by this notice.

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This blog is intended to be a compilation of information and resources pulled from federal, state, and local agencies. This is not intended to be legal advice. For up to the minute information and guidance on COVID-19, please follow the guidelines of the Centers for Disease Control and Prevention (CDC) and your local health organizations.