cjsmith
Oct 9 2009, 09:13 AM
Another question I have come across. Does the AARA premium reduction apply to Medical, Vision, and Dental? Or, does that reduction apply toward medical insurance premiums only?
Thanks!
oriecat
Oct 9 2009, 11:52 AM
IRS Notice 2009-27
Q-27. Is the premium reduction available for COBRA continuation coverage
under a vision-only or dental-only plan?
16
A-27. 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.