American Rescue Plan Act of 2021 (ARPA)
Provides for payment of COBRA premiums for Assistance Eligible Individuals (AEIs)
Individuals who are eligible for COBRA due to termination of employment or reduction in hours and has elected COBRA from April 1, 2021 through September 30, 2021.Or for as long as the AEI remains eligible for COBRA during this period
- A special enrollment period will be available for individuals who did not elect COBRA or who discontinued COBRA coverage prior to April 1, 2021.
- Self-Insured plans must initially cover the cost of the COBRA premium assistance, but will be fully reimbursed via tax credits.Insurance companies will cover this cost for fully insured plans
- Notice must be given to employees/former employees who may benefit from this assistance by May 30, 2021Model notices will be available by the end of April and to most AEIs prior to the expiration of their premium assistance.
CD will alert you when more details and model notices are available; in the meantime, please see our blog for additional information.
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