Guest cjsmith Posted October 9, 2009 Posted October 9, 2009 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 Posted October 9, 2009 Posted October 9, 2009 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© 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.
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