123STA T .46 4 PUBLIC LA W 111 –5—FE B.1 7, 2 0 0 9period o fCOBRAc o nt in ua tion co v era g eto wh ich s u b- section ( a ) ( 1 )(A) app l iesorthei m mediatel y subse q uent period , the full premium amount for such coverage, the person to whom such payment is payable shall — ( I )ma k e a reimbursement payment to such individual for the amount of such premium paid ine x cess of the amount required to be paid under subsection (a)(1)(A)
or (II) provide credit to the individual for such amount in a manner that reduces one or more subsequent premium payments that the individual is required to pay under such subsection for the coverage involved . (ii) R EIMBURS I NG EM PLOY ER.—A person to which clause (i) applies shall be reimbursed as provided for in section 6432 of the Internal Revenue Code of 1 98 6 for any payment made, or credit provided, to the employee under such clause. (iii) PA YMEN T OR C RE D ITS.— U nless it is reasonable to believe that the credit for the excess payment in clause (i)(II) will be used by the assistance eligible individual within 18 0 days of the date on which the person receives from the individual the payment of the full premium amount, a person to which clause (i) applies shall make the payment required under such clause to the individual within 60 days of such payment of the full premium amount. If, as of any day within the 180-day period, it is no longer reason- able to believe that the credit will be used during that period, payment equal to the remainder of the credit outstanding shall be made to the individual within 60 days of such day. (13) PENALTY F OR FAILURE TO NOTIFY H EALTH PLAN OF CESSATION OF ELIGIBILITY FOR PREMIUM ASSISTANCE.— (A) IN GENERAL.—Part I of subchapter B of chapter 68 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section
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‘ SEC.6720 C. P E NALTYFOR FA I L U RE TO NOTIFY H EALTH PLAN OF CESSATION OF ELI G I B ILITY FOR COBRA PRE M IUM ASSISTANCE. ‘ ‘(a) IN G ENERAL.—Any person required to notify a group health plan under section 3002(a)(2)(C)) of the H ealth Insurance Assistance for the Unemployed Act of 2009 who fails to make such a notification at such time and in such manner as the S ecretary of L abor may require shall pay a penalty of 110 percent of the premium reduction provided under such section after termination of eligibility under such subsection. ‘‘(b) REASONABLE CAUSE EX CEPTION.— N o penalty shall be imposed under subsection (a) with respect to any failure if it is shown that such failure is due to reasonable cause and not to willful neglect. ’ ’. 26USC 6 7 2 0 C .Timep e r i od . D e a d l i n e s .
