The University of Tennessee, Knoxville

Tennessee County Municipal Advisory Service

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COBRA and W-2 Reporting

Reference Number: MTAS-1546
Tennessee Code Annotated
Reviewed Date: May 22, 2017
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Health care reform also has a provision that will require employers to report the cost of group health plan coverage on each employee’s W-2 form each year. Cost is generally to be determined by taking the COBRA premium and subtracting the two percent administrative fee (if applicable). For this purpose, the government also may use COBRA cost as a factor to determine if your group plan is considered a “Cadillac” plan. Cadillac plans will have new excise taxes that go into effect in 2020.

The Department of Labor notes that health care reform did not (1) eliminate or change the COBRA rules; (2) extend the COBRA time periods; or (3) extend the premium subsidy law.