BAS’ Cobra Control Services, LLC ("CCS") has reporting capability to help with claiming an American Rescue Plan Act (ARPA) tax credit for providing subsidized health coverage. The report provides information about continuants who elected to be treated as eligible for premium assistance under the ARPA.
The American Rescue Plan Act provides a 100% COBRA premium subsidy for certain individuals entitled to federal COBRA or state mini-COBRA due to reduction of hours or involuntary termination of employment. Employers who provide "free" coverage to assistance-eligible individuals under federal COBRA may claim a tax credit for providing that coverage. Employers who provide "free" coverage to assistance-eligible individuals under state mini-COBRA do not take the tax credit (the insurance company is eligible for the credit).
The ARPA report provides the cost of coverage as reported to CCS for an employer’s assistance-eligible individuals. The numbers contained in this report are intended to help with Form 941 tax reporting for employers to receive a credit for premiums paid for continuant(s). Consult your tax advisor for information about taking a tax credit.
An employer that uses CCS for COBRA administration and has assistance-eligible individuals may obtain a copy of subsidy report by following these steps:
- Go to www.myenroll.com
- Enter your MyEnroll360 Username and Password then click "SIGN IN"
- Open the Navigation menu
- Within the “Reports” option, look for the “COBRA ARPA Reports” section
- Two reports will be listed:
- Monthly ARPA Enrollment Report All Locations (a consolidation of all locations, if multiple locations exist)
- Monthly ARPA Enrollment Report by Single Location (allows the selection of a single location from a list of locations, if any, for the report)
- The data contained in each report is real time data, so it may be generated on an as-needed basis 24/7
- Employers may want to download their reports each month for tax recordkeeping purposes
Important items to note:
- If a continuant is enrolled in an HRA (health reimbursement account), a tax credit of up to 102% of the amount actually reimbursed to the continuant may be claimed, not the monthly premium billed to the individual. If a continuant is enrolled in an HRA, the report contains the monthly premium NOT the actual amount reimbursed. If a plan includes a bundled medical/HRA, consult your tax advisor about the proper amount to claim as a tax credit.
- The figures on the report may change as employers and/or brokers provide CCS with updated rate information at open enrollment. It is important to make sure CCS is provided with current plans and rates.
If you have questions about the new report, please contact CCS at 888.887.6187 or email service@CobraControl.com.
