Did You Know? The American Rescue Plan Act Includes a Mandatory COBRA Subsidy Provision that Imposes New Obligations on Employers
DOL.jpg (DOL.jpg)

The American Rescue Plan Act (ARPA), signed into law last month, requires employers to provide subsidized COBRA coverage to employees who qualify for and elect COBRA continuation coverage due to either a reduction in hours or an involuntary termination of employment. Employers are required to pay the eligible individual’s COBRA premium for coverage periods from April 1 through September 30, 2021. Our summary of the new COBRA subsidy rules is here.

This week the Department of Labor's Employee Benefits Security Administration published a new webpage about the COBRA premium subsidy, including frequently asked questions (FAQs) and various model notices. Employers have until May 31, 2021, to provide the notice of the opportunity to elect subsidized coverage and individuals have 60 days following the date that notice is provided to elect subsidized coverage. Employers must take immediate action or they will face an excise tax for failing to comply, which can be as much as $100 per qualified beneficiary (no more than $200 per family) for each day the employer is in violation for the COBRA rules.

The DOL guidance is available here.

This blog/web site presents general information only. The information you obtain at this site is not, nor is it intended to be, legal advice, and you should not consider or rely on it as such. You should consult an attorney for individual advice regarding your own situation. This website is not an offer to represent you. You should not act, or refrain from acting, based upon any information at this website. Neither our presentation of such information nor your receipt of it creates nor will create an attorney-client relationship with any reader of this blog. Any links from another site to the blog are beyond the control of Pullman & Comley, LLC and do not convey their approval, support or any relationship to any site or organization. Any description of a result obtained for a client in the past is not intended to be, and is not, a guarantee or promise the firm can or will achieve a similar outcome.

PDF
Subscribe to Updates

About Our Labor, Employment and Employee Benefits Law Blog

Alerts, commentary, and insights from the attorneys of Pullman & Comley’s Labor, Employment Law and Employee Benefits practice on such workplace topics as labor and employment law, counseling and training, litigation, immigration law and union issues, as well as employee benefits and ERISA matters.

Other Blogs by Pullman & Comley

Connecticut Health Law Blog

Education Law Notes

For What It May Be Worth

Recent Posts

Archives

Jump to Page