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New COBRA Subsidies Create Urgency For Employers - Employment and HR

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President Joe Biden signed the American Rescue Plan Act of 2021
(American Rescue Plan) into law on March 11, 2021. The American
Rescue Plan provides up to six months of full Consolidated Omnibus
Budget Reconciliation Act of 1985 (COBRA) premium payments for
assistance eligible individuals (AEIs). The COBRA
subsidy period lasts from April 1, 2021, to Sept. 30, 2021.
The American Rescue Plan provides new special election
opportunities for certain AEIs and imposes several new notice
requirements on employers with respect to the subsidies. The
quickly-approaching deadlines create some urgency for employers to ....

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COVID-19 Resource Guide for Human Resources Professionals: Employers Must Notify Workers About New COBRA Continuation Coverage Rights by May 31 | Troutman Pepper

Who Needs to Know
Why It Matters
The May 31 deadline to notify workers about new COBRA continuation coverage rights is rapidly approaching. Many employers still have questions about who should receive this notice. This alert provides a step-by-step guide to help answer this question.
By now you re aware that the American Rescue Plan Act (ARPA), signed into law by President Biden on March 11, provides a six-month COBRA subsidy for individuals who lose health coverage due to an involuntary termination of employment or reduction of hours. We re also certain that you re aware of the looming May 31 deadline for distribution of the new ....

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ARPA COBRA Premium Subsidy – Time for Employer Plans to Update COBRA Notices | Akerman LLP - HR Defense

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Employers should be busy preparing tailored COBRA continuation coverage notices for certain individuals, addressing complicated election and altered COBRA premium topics that took effect only in recent weeks. Below, we offer practical summaries and specific timing suggestions for the anxiously awaited model notices that have now been released. Notices will soon reach Americans who could receive up to six months of free COBRA coverage after having lost their active employee coverage within a certain time frame due to either an involuntary termination of employment or a reduction in hours. ....

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

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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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Department Of Labor Issues Guidance, Model Notices For COBRA Premium Subsidies Under The American Rescue Plan Act | Fox Rothschild LLP

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On April 7, 2021, the U.S. Department of Labor (DOL) issued much needed guidance to employers and their COBRA administrators on the “COBRA premium subsidy” provision of the American Rescue Plan Act (ARPA). This provision requires employers to subsidize COBRA coverage for Assistance Eligible Individuals (AEIs) and their beneficiaries and to provide notice to AEIs who are losing their health care coverage and are eligible for COBRA premium assistance.
Review of Federal COBRA Subsidy
Under the ARPA, the federal government will pay 100% of COBRA insurance premiums from April 1, 2021 through September 30, 2021 for individuals who lose health coverage due to a qualifying event, such as a reduction in hours or involuntary termination of employment. In short, this subsidy applies to anyone who lost health insurance through a qualifying event within the past 18 months, even if it was unrelated to the COVID-19 pand ....

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