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Workplace Law Lowdown | The American Rescue Plan: Employer Takeaways | Bodman

To embed, copy and paste the code into your website or blog: President Biden signed the American Rescue Plan Act of 2021 (“ARPA”) into law on March 11, 2021. Provided here is an overview of the key features that affect employers. COBRA Subsidy In general, upon the loss of employer-sponsored health insurance benefits, the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) allows eligible employees to continue such benefits for up to 18 months at their own expense, meaning employees are typically responsible for the entirety of the premium amount plus an additional 2 percent administrative fee. ARPA seeks to assist employees who are involuntarily terminated or suffer a reduction in work hours resulting in a loss of coverage (“assistance eligible individuals”). Between April 1, 2021 and September 30, 2021, employers must subsidize 100 percent of the COBRA continuation coverage of any assistance eligible individuals who complete COBRA enrollment. Employers will late

Department of Labor Provides Model Subsidized COBRA Notices and Additional Guidance | Polsinelli

To embed, copy and paste the code into your website or blog: As described in our March 15, 2021 update, the American Rescue Plan Act of 2021 (the “Act”) created a temporary, 100% subsidy for assistance-eligible individuals’ premium payments for continuation health care coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), harkening back to past relief subsidizing COBRA continuation coverage under the American Recovery and Reinvestment Act of 2009. On April 7, 2021 the Department of Labor released four model notices (available here) employers and plan administrators may use to comply with the additional notice requirements with respect to the subsidized COBRA continuation coverage, along with a summary of the premium assistance provisions of the Act and Frequently Asked Questions ( FAQ ) about implementation of the premium assistance.

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