April 2021 – The recently enacted American Rescue Plan Act (3/11/21), provides for a 100% federally-financed subsidy of COBRA insurance premiums for certain eligible individuals from April 1, 2021 – September 30, 2021.
Per ARPA guidelines, employers sponsoring group health plans must cover the premium cost for eligible individuals who enroll with COBRA and may then reclaim the cost as a payroll tax credit. Employers are also responsible for notifying all employees who are eligible for the assistance by May 31, 2021.
Who’s Eligible?
- Individuals who lost coverage due to involuntary termination of employment or reduction of hours
- Individuals who are not eligible for other group health benefits or Medicare
- Individuals who are still wthin the 18-month Federal COBRA coverage period
- Individuals with the following COBRA status:
- Current COBRA election in place as of April 1, 2021
- No COBRA election in place, but who make the election within 60 days of receiving the notice (coverage will be retroactive back to April 1, 2021)
- Become eligible for and elect COBRA on or after April 1, 2021 (they will be subsidy eligible from 1st day of coverage through September 30, 2021.)
For more details about this program, please visit: FAQs at Department of Labor website.