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The COBRA Premium Subsidy Law: Understanding Your Compliance Obligations - Employment and HR


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The American Rescue Plan Act of 2021 ( ARPA ), which
was signed by President Biden on March 11, 2021, includes
provisions that dramatically and immediately affect compliance with
the continued group health plan coverage requirements of the
Consolidated Omnibus Budget Reconciliation Act of 1985
( COBRA ). In particular, ARPA includes a 100% COBRA
premium subsidy for periods of coverage occurring between April 1
and September 30, 2021. The subsidy is available to qualified
beneficiaries who are eligible for COBRA coverage due to a covered
employee s reduction in hours of employment or involuntary
termination of employment. The subsidy applies not only to federal ....

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