Mercer Select US - IRS reminds public about COBRA subsidy ineligibility notice and penalties

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IRS reminds public about COBRA subsidy ineligibility notice and penalties

An IRS news item reminds COBRA qualified beneficiaries receiving federal premium assistance that they must notify the former employer sponsoring their coverage when they lose eligibility for the COBRA premium subsidy. Qualified beneficiaries who fail to give this notice may incur penalties of up to 110 percent of the subsidy received after loss of eligibility. Others aware of a beneficiary's failure to provide notice of subsidy ineligibility can use Form 3949-A to report the violation to the IRS. (Select News, 2 Sep 2009)

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