On March 31, 2009, the IRS issued a notice relating to premium assistance for COBRA continuation coverage under the American Recovery and Reinvestment Act of 2009 (ARRA). Notice 2009-27 contains many helpful clarifications on the following topics:

  • INVOLUNTARY TERMINATION
  • ASSISTANCE ELIGIBLE INDIVIDUAL
  • CALCULATION OF PREMIUM REDUCTION
  • COVERAGE ELIGIBLE FOR PREMIUM REDUCTION
  • RECAPTURE OF PREMIUM ASSISTANCE