In an article posted on the Internet by The National Law Review,* Attorneys Matthew A. Secrist and Gregory J. Vivilani of the firm of Squire Patton Boggs opine:
"Many employers that have Section 9501 of the American Rescue Plan Act of 2021 (the 'ARPA') requires employers to extend offers of free COBRA coverage to certain individuals for the period from April 1, 2021 through September 30, 2021.
"The law also requires employers to extend offers of COBRA coverage to other individuals whose right to COBRA coverage previously ended.
"In an effort to help offset the costs of providing free COBRA coverage, the law makes available tax credits that may be taken against employer Medicare taxes. The tax credits are based on the COBRA premiums that would have been payable by the qualified beneficiary for the relevant free COBRA coverage.
"This portion of the law has an unusual twist. Except as may otherwise be provided by the Secretary of the Treasury, the tax credits are provided to the following persons:
> If the plan is a multiemployer plan, the multiemployer plan itself.
> If the plan is fully or partially self-insured, to the employer that sponsors the plan (including state and local governmental employers)
> If the plan is not described above, to the insurance company"
NYPPL has linked this article posted on the Internet by The National Law Review pro bono.