A few weeks ago, the Internal Revenue Service (IRS) released its much-anticipated guidance on an individuals premium costs and an employers tax breaks for continuation of COBRA coverage. Among the provisions in President Biden’s American Rescue Plan Act of 2021 (ARPA) is a temporary 100% reduction in an individual’s COBRA health coverage premium following either a reduction in hours or an involuntary termination of employment. In addition to the no cost continuation of COBRA for individuals, ARPA also provided a corresponding tax credit for employers and others that maintain group health plans. The latest IRS guidance provides much needed clarification on a broad array of subject under the COBRA heading in the format of a detailed 86 item FAQ. The full guidance is available here on the IRS site.