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New ARPA/COBRA Subsidy The federal American Rescue Plan Act of 2021 (ARPA) provides for a 100% subsidy of COBRA premiums for six months from April 1, 2021 through September 30, 2021, for individuals (and their covered dependents) who lose coverage under their employer’s health care plan due to a reduction in hours or involuntarily termination for reasons other than gross misconduct. The subsidy applies to plans subject to COBRA (both insured and self-insured plans) as well as self-funded and insured plans not subject to COBRA but subject to continuation coverage under state law (such as California’s Cal-COBRA, which applies to employers with two or more employees). It does not apply to flexible health spending accounts, and it is currently unclear whether it applies to dental or vision plans.

New yorkUnited statesDistrict of columbiaGavin newsomMuriel bowserAndrew cuomoCalifornia department of fair employmentFenwick westYork state department of laborEmployment opportunity commissionCalifornia department of industrial relationsDepartment of laborAmerican rescue plan actPaid sick leaveGovernor gavin newsomFamilies first coronavirus response act