{"id":649,"date":"2009-04-11T20:10:07","date_gmt":"2009-04-12T00:10:07","guid":{"rendered":"https:\/\/old.visionpayroll.com\/kb\/?p=649"},"modified":"2009-04-18T23:02:06","modified_gmt":"2009-04-19T03:02:06","slug":"coverage-eligible-for-premium-reduction-under-notice-2009-27","status":"publish","type":"post","link":"https:\/\/old.visionpayroll.com\/kb\/2009\/04\/coverage-eligible-for-premium-reduction-under-notice-2009-27\/","title":{"rendered":"Coverage Eligible for Premium Reduction under Notice 2009-27"},"content":{"rendered":"<p class=\"MsoNormal\" style=\"margin: 0in 0in 6pt;\"><span style=\"font-size: 10pt; font-family: Verdana;\">The <a href=\"http:\/\/www.irs.gov\/\" target=\"_blank\">Internal Revenue Service<\/a> recently released an advance copy of <a href=\"http:\/\/www.irs.gov\/pub\/irs-drop\/n-09-27.pdf\" target=\"_blank\">Notice 2009-27, <em style=\"mso-bidi-font-style: normal;\">Premium assistance for COBRA benefits<\/em><\/a>. Pursuant to the American Recovery and Reinvestment Act of 2009 or ARRA, certain involuntarily terminated employees are eligible for employer-provided subsidies to help pay for their Consolidated Omnibus Budget Reconciliation Act (COBRA) continuation coverage. Employers may then claim a credit on their <a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/f941.pdf\" target=\"_blank\">Form 941<\/a> to be reimbursed for the assistance provided.\u00a0<a href=\"mailto:info@visionpayroll.com\" target=\"_blank\">Vision Payroll<\/a>\u00a0provided an <a href=\"https:\/\/old.visionpayroll.com\/kb\/2009\/03\/irs-releases-notice-on-premium-assistance-for-cobra-benefits\/\" target=\"_blank\">overview<\/a> of <a href=\"http:\/\/www.irs.gov\/pub\/irs-drop\/n-09-27.pdf\" target=\"_blank\">Notice 2009-27<\/a> when it was first issued. Today we will be reviewing Coverage Eligible for Premium Reduction under <a href=\"http:\/\/www.irs.gov\/pub\/irs-drop\/n-09-27.pdf\" target=\"_blank\">Notice 2009-27<\/a>.<\/span><\/p>\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 6pt;\"><span style=\"font-size: 10pt; font-family: Verdana;\">Premium reduction is available for COBRA coverage for group health plans, including vision-only and dental-only plans, but not for flexible spending arrangements or FSAs under <a href=\"http:\/\/www4.law.cornell.edu\/uscode\/26\/usc_sec_26_00000106----000-.html\" target=\"_blank\">\u00a7106(c)<\/a> offered under a <a href=\"http:\/\/www4.law.cornell.edu\/uscode\/26\/usc_sec_26_00000125----000-.html\" target=\"_blank\">\u00a7125<\/a> cafeteria plan. Health reimbursement arrangements or HRAs are eligible for premium reduction even though they qualify as FSAs under <a href=\"http:\/\/www4.law.cornell.edu\/uscode\/26\/usc_sec_26_00000106----000-.html\" target=\"_blank\">\u00a7106(c)<\/a>. That is because they are not provided through a <a href=\"http:\/\/www4.law.cornell.edu\/uscode\/26\/usc_sec_26_00000125----000-.html\">\u00a7125<\/a> cafeteria plan. Non-health benefits, such as group life insurance, that are not eligible for COBRA continuation coverage are also not eligible for premium reduction.<\/span><\/p>\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 6pt;\"><span style=\"font-size: 10pt; font-family: Verdana;\">Retiree coverage that doesn\u2019t differ from that offered to \u201csimilarly situated active employees\u201d, whether or not the cost is the same, is also eligible for premium reduction, as long as the cost to the employee does not exceed the maximum allowable under COBRA.<\/span><\/p>\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt;\"><span style=\"font-size: 10pt; color: black; font-family: Verdana;\">The next topic covered will be <a href=\"https:\/\/old.visionpayroll.com\/kb\/2009\/04\/beginning-of-premium-reduction-period-under-notice-2009-27\/\" target=\"_blank\">Beginning of Premium Reduction Period<\/a>. Contact <a href=\"mailto:info@visionpayroll.com\" target=\"_blank\">Vision Payroll<\/a> if you have any questions on <a href=\"http:\/\/www.irs.gov\/pub\/irs-drop\/n-09-27.pdf\" target=\"_blank\">Notice 2009-27<\/a>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Internal Revenue Service recently released an advance copy of Notice 2009-27, Premium assistance for COBRA benefits. Pursuant to the American Recovery and Reinvestment Act of 2009 or ARRA, certain involuntarily terminated employees are eligible for employer-provided subsidies to help pay for their Consolidated Omnibus Budget Reconciliation Act (COBRA) continuation coverage. Employers may then claim [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[795,819,545,548,853,321,842],"_links":{"self":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/649"}],"collection":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/comments?post=649"}],"version-history":[{"count":7,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/649\/revisions"}],"predecessor-version":[{"id":656,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/649\/revisions\/656"}],"wp:attachment":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/media?parent=649"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/categories?post=649"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/tags?post=649"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}