Hi. Has anyone heard whether the IRS has issued procedures for high income employees to "permanently waive" the COBRA premium subsidy in order to avoid having to pay it back later? If a former employee didn't waive the subsidy in writing, could he still be entitled to it?

The DOL's model notices include a section to enable the participant to waive the subsidy.

Why would they need to waive it? Wouldn't they just send in their election form and not send in the AEI form?

Online, I found a form, "Request for Treatment as an Assistance Eligible Individual." I think they would just skip filling out this form. I'm going to try to contact the IRS to confirm this.

Yes, you cannot get the subsidy unless you complete that form. So if someone didn't want it, because they don't qualify, then they wouldn't complete it.

Of course, you would document in your files if a person is not eligible for the subsidy and why.

If the person is eligible for the subsidy but chooses to waive it, I would prefer to have a simple, signed waiver on file that documents that the person understood that she/he was eligible for the subsidy but voluntarily chose to waive it. Then, at least, you won't have to deal with any later excuses they may concoct for why they did not know they could get the subsidy ("The dog ate my COBRA subsidy notice."). Rock covers scissors. Signed document covers butt.