Q.- Our company’s finances are tight and we don’t want to pay to send the new required COBRA premium subsidy notices. What will happen if we just don’t send them?
A.- Not sending the required American Rescue Plan Act COBRA premium subsidy notices could subject your company to an excise tax under the Internal Revenue Code for failing to satisfy the COBRA continuation coverage requirements. This tax could be as much as $100 per qualified beneficiary, but not more than $200 per family, for each day that your organization is in violation of the COBRA rules for not sending the required notices.