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COBRA health insurance: Free until Sept but there s a delay
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HEALTH CARE BRIEFING: CDC Advisers Punt on J&J Vaccine Decision
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Under the American Rescue Plan Act of 2021 (ARPA), which was passed by Congress on March 11, 2021, the cost of health insurance coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) is fully subsidized from April 1, 2021 until September 30, 2021 for individuals who lost their health coverage due to an involuntarily termination or a reduction in hours. The ARPA requires employers to notify eligible individuals about the new COBRA subsidy by May 31, 2021. Eligible individuals who did not previously elect COBRA, and those who elected COBRA but stopped paying the premiums, must also be given a second election to participate. Click here to read a prior blog post by Paolo Pasicolan with more information about the COBRA subsidy under the ARPA.
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As part of the American Rescue Plan Act of 2021 (“ARPA”), Congress enacted a temporary Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) subsidy for certain individuals for coverage periods from April 1, 2021 to September 30, 2021 (the “Subsidy Period”). On April 7, 2021 the United States Department of Labor (“DOL”) issued FAQs to assist employers and plan administrators to understand the subsidy.
The subsidy provides that the employee need not pay COBRA premiums during the Subsidy Period, but rather that the employer pays 100% of the subsidy to “Assistance Eligible Individuals” (“AEIs”) and then gets repaid through tax credits. The assistance applies to all “group health plans sponsored by private-sector employers or employee organizations (unions) subject to the COBRA rules under the Employee Retirement Income Security Act of 1974 (ERISA). They also apply to plans sponsored b
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