Other topics tackled in the notice include: applying the COBRA subsidy to spouses and dependent children of employees, and terminating the COBRA continuation coverage due to late payments. Regulators also weigh in on applying the new law to dental, vision and retiree health benefits. For example:
Q: Is the premium reduction available for COBRA continuation coverage under a vision-only or dental-only plan?
A: Yes. The premium reduction is available for COBRA continuation coverage of any group health plan, except a flexible spending arrangement (FSA) under section 106(c) offered under a section 125 cafeteria plan. This includes vision-only or dental-only plans and “mini-med plans,” whether or not the employer pays for a portion of the costs for active employees. The premium reduction is not available for continuation coverage offered by employers for non-health benefits that are not subject to COBRA continuation coverage, such as group life insurance.
Q: Can retiree health coverage be treated as COBRA continuation coverage for which the premium reduction is available?
A: Yes, but only if the retiree coverage does not differ from the coverage made available to similarly situated active employees (though the amount charged for the coverage may be higher than that charged to active employees, and the retiree coverage may still be eligible for the ARRA premium reduction, as long as the charge to retirees does not exceed the maximum amount allowed under the federal COBRA rules).
Related coverage:
COBRA subsidy may raise health care premiums
