The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events. Also available in Spanish MS Word | PDF. The ARPA, among other things, makes significant changes to COBRA administration by providing for additional COBRA enrollment rights and a temporary 100% COBRA premium subsidy from April 1, 2021 to September 30, 2021. The American Rescue Plan Act (ARPA) provides a temporary COBRA premium subsidy for six months beginning on April 1, 2021 and ending September 30, 2021 for individuals who lost group health plan coverage due to an involuntary termination or reduction in hours: this is referred to in this article as the COBRA Premium Subsidy. Q: Has the Department of Labor (DOL) issued guidance on the COBRA premium subsidy? The DOL’s Model ARP General Notice and COBRA Continuation Election Notice,* which must include the Summary of ARPA Provisions and Request for AEI Treatment Form, allows AEIs to elect COBRA in the normal course and request the subsidy by using the form to request AEI status. Blue Shield letter to Cal-COBRA eligible members. Under ARPA, certain participants and beneficiaries of employer-sponsored health plans are eligible for a federal subsidy, which will cover for a limited period 100% of the premium for COBRA continuation coverage. As you may know, failure to provide accurate and timely COBRA notices come with hefty penalties, so compliance is imperative. The DOL also released a set of FAQs that primarily focus on providing information to impacted employees. The American Rescue Plan Act (ARPA) provides a temporary COBRA premium subsidy for six months beginning on April 1, 2021 and ending September 30, 2021 for individuals who lost group health plan coverage due to an involuntary termination or reduction in hours: this is referred to in this article as the COBRA Premium Subsidy. The Department of Labor is expected to issue further guidance, but employers should consult with their insurers, third-party administrators, and advisors now to ensure compliance. The Department of Labor (DOL) Employee Benefits Security Administration (EBSA) has created a new webpage with resources for employers, advisors and workers about the COBRA premium assistance under ARPA. 1319, the American Rescue Plan Act of 2021 (ARP), on March 11, 2021. On April 7, 2021, the U.S. Department of Labor posted model notices and a set of FAQs to help employers comply with the federal COBRA premium subsidy put … (See Notice 2021-31 and U.S. Department of Labor’s FAQs About COBRA Premium Assistance Under the American Rescue Plan Act of 2021.) COBRA Subsidy – A 100% premium subsidy is provided, funded through employer tax credits. EBSA Guidance on COBRA Subsidy in the American Rescue Plan Act. To assist employers in understanding these new obligations, the Department of Labor recently issued guidance related to the COBRA subsidies under the ARPA and included Frequently Asked Questions (FAQs) and model notices. The updated DOL guidance, while helpful, still left many questions unanswered. H.R. On April 7, 2021, the Department of Labor ("DOL") published additional guidance on the COBRA Subsidy requirements in the form of Frequently Asked Questions ("FAQs") and model notices. In addition to those provisions, the ARPA contains provisions that are of special interest to employers and employees. Q: Has the Department of Labor (DOL) issued guidance on the COBRA premium subsidy? Department of Labor, in consultation with Department of Treasury and Department of Health and Human Services, is directed to issue model subsidized COBRA election notices within 30 days of the enactment of ARPA. With the signing of the American Rescue Plan Act by President Biden on March 11, 2021, COBRA continuation coverage will be subsidized 100 percent for many … Model General Notice and COBRA Continuation Coverage Election Notice: MS Word | PDF. Under ARPA, certain participants and beneficiaries of employer-sponsored health plans are eligible for a federal subsidy, which will cover for a limited period 100% of the premium for COBRA continuation coverage. Under ARPA, certain participants and beneficiaries of employer-sponsored health plans are eligible for a federal subsidy, which will cover for a limited period 100% of the premium for COBRA continuation coverage. COBRA Premium Assistance under the American Rescue Plan Act of 2021 FAQs. If you have any questions regarding the COBRA subsidy guidance, or its interaction with a particular state’s continuation coverage, contact a Graydon Employee Benefits attorney. Like previously issued FAQs (available at The Department of Labor has issued a model alternative notice to be used by these other plans to satisfy the mini-COBRA subsidy notice requirements. The American Rescue Plan Act (ARPA), signed into law March 11, 2021, provides certain individuals a 100% subsidy of premiums for employer-sponsored group health insurance continued under the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) and similar state continuation of coverage program (sometimes referred to as mini-COBRA). The “gross misconduct” standard is a higher standard to meet than showing an individual was terminated for cause. As a reminder, ARPA provides a 100% subsidy for employer-sponsored group health insurance continued under COBRA and similar state continuation of coverage programs for eligible individuals, who lose (or lost) health coverage due … [UPDATE: On April 7, 2021, the Department of Labor issued the model notices required by ARPA, as well as an FAQ to provide additional guidance on the changes to the COBRA subsidies.]. In order to comply with the changes made by ARPA, employers will need to revise all COBRA notices and must send notice of the subsidy and the right to elect coverage to certain COBRA-eligible workers, current COBRA recipients and their dependents. Yesterday, the Department of Labor released Frequently Asked Questions and model notices and election forms in connection with the American Rescue Plan Act (“ARPA”) COBRA premium subsidy. Employers, insurers, and administrators will need to implement the ARPA COBRA provisions on very short notice, since subsidies became available beginning April 1, 2021. The ARPA COBRA Subsidy. The Department of Labor (DOL) has released model notices and a COBRA subsidy information website related to the COBRA subsidy that was passed as part of the American Rescue Plan Act or 2021 (ARPA). FFCRA Leave and Tax Credits Extended and Expanded, No Longer Mandated Update: The IRS issued FAQ guidance on the COBRA subsidy (FAQ begins on page 6) and related tax credit on May 18, addressing subsidy administration, what forms to use when reconciling the credit and more. Law 117-2. On April 7, 2021, the U.S. Department of Labor posted model notices and a set of FAQs to help employers comply with the federal COBRA premium subsidy put … Model General Notice and COBRA Continuation Coverage Election Notice The ARPA FAQs address a number of questions and concerns that employers have had since the Act was signed into law. Important dates: March 11, 2021: ARPA signed into law April 1, 2021: ARPA subsidy for COBRA premiums began. For Special Election AEIs who elect COBRA during the Subsidy Election Period, is the coverage retroactive to their qualifying event? Active members. As we described in our client advisory dated May 5, 2020, the DOL had provided a tolling period for COBRA and other health plan deadlines. Summary of the American Rescue Plan Act (“ARPA”) The new American Rescue Plan Act (“ARPA”) was signed into law on March 11, 2021. The statute directs the Department of Labor (DOL) to publish model notices within 30 days of the … On April 7, 2021, the Department of Labor released answers to frequently asked questions (FAQs) related to the ARPA COBRA subsidy and model notices. The Department of Labor and Department of Health and Human Services is expected to provide new model notices within 30-days of enactment of the law. A: The federal government will subsidize COBRA continuation coverage premiums for “assistance eligible individuals” who elect COBRA continuation coverage between April 1, 2021, and September 30, 2021. 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. Now, the U.S. Department of Labor’s … Sept. 30, 2021: ARPA subsidy for COBRA premiums expire. The ARPA required the DOL to provide two model notices (general and election) by April 10 and a third model notice (termination of the subsidy) by April 25. Since ARPA was enacted, employers have been preparing to comply, albeit with many open questions. ARPA requires that full COBRA premiums be subsidized for “Assistance Eligible Individuals” for periods of coverage between April 1, 2021, through September 30, 2021 . This year, the American Rescue Plan Act (ARPA) included big changes to COBRA. A: On March 25, we reported on the 100% federally funded COBRA premium subsidy included in the American Rescue Plan Act (ARPA), noting the need for additional guidance on a number of issues. ARPA Requires Tax-Free COBRA Subsidy. A: On March 25, we reported on the 100% federally funded COBRA premium subsidy included in the American Rescue Plan Act (ARPA), noting the need for additional guidance on a number of issues. Eligibility and Duration To be an assistance eligible individual and receive the 100percent COBRA subsidy, an individual is required to be an employeeor other qualified beneficiary who (1) is eligible for COBRAcontinuation coverage by reason of a particular type of qualifyingevent (i.e., the reduction in hours or involuntary termination(other than by reason of such employee's gross misconduct) fromemployment of an employee who was provided coverage under a grouphealth plan) and (2) elects The U.S. Department of Labor (DOL) has issued model notices and Frequently Asked Questions (FAQs) regarding the COBRA subsidy (see COBRA Premium Subsidy guidance) made available under the American Rescue Plan Act of 2021 (ARPA).. As explained in our previous advisory, ARPA provides a 100 percent COBRA subsidy to eligible individuals from April 1, 2021, through … As we previously reported, on March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 (“ARPA”) into law, which includes a COBRA premium assistance program.Pursuant to ARPA, the Department of Labor (DOL) was instructed to issue model notices regarding the six-month subsidy period, the extended election period, the alternative coverage option, … The American Rescue Plan Act of 2021 (ARPA… Department of Labor ARPA COBRA FAQs. The Department of Labor (DOL) has released model notices and a COBRA subsidy information website related to the COBRA subsidy that was passed as part of the American Rescue Plan Act or 2021 (ARPA). As we described in our March 15, 2021 LawFlash, the American Rescue Plan Act of 2021 (ARPA) includes a 100% COBRA premium subsidy for any employee or dependent who is a COBRA qualified beneficiary (or will become one) resulting from an involuntary termination of employment or a reduction of hours (referred to as an Eligible Individual). As we wrote about here, … Other Rights. provisions of the American Rescue Plan Act of 2021 (ARP), as it appiesl to the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly called COBRA. Among the American Rescue Plan Act’s many provisions, it provides for 100 percent premium subsidies for health insurance continuation under the federal Consolidated Omnibus Budget Reconciliation Act (COBRA) for certain individuals who elect COBRA continuation coverage between April 1, 2021, and September 30, 2021.. ARPA directs those responsible for COBRA administration to notify individuals of their eligibility for (and any expiration of) COBRA premium assistance, and also had directed the U.S. Department of Labor (“DOL”) to issue model notices for administrators to use in fulfilling these obligations. What Employers Need to Know About ARPA & COBRA. This year, the American Rescue Plan Act (ARPA) included big changes to COBRA. The U.S. Department of Labor (DOL) has already produced model notice forms and initial … The Department of Labor (“DOL”) has issued model notices regarding COBRA premium assistance (a/k/a COBRA subsidies). Sponsors of group health plans have new responsibilities following the passage of the American Rescue Plan Act (“ARPA”) on March 11, 2021. These notices can be used to help employers satisfy the new notice requirements under ARPA. The tricky thing is that neither COBRA nor the ARPA defines “gross misconduct”. Following is a summary of the COBRA subsidy provisions. To provide a recap, the ARPA defines those (and their covered family members) who can receive the COBRA premium subsidy as “assistance eligible individuals.” American Rescue Plan Act of 2021: COBRA Subsidy, Pension Funding, and Other Employee Benefit Changes By Suzanne G. Odom, Kellie M. Thomas, Joy M. Napier-Joyce and Brian M. Johnston on March 11, 2021. The U.S. Department of Labor (DOL) recently issued … The COBRA premium subsidy is available for Assistance Eligible Individuals (AEIs) from April 1, 2021 and ending the earlier of (1) the date that their COBRA coverage expires, or (2) September 30, 2021. On April 7, 2021, the U.S. Department of Labor (DOL) released a link to its webpage dedicated to the COBRA premium assistance authorized under the American Rescue Plan Act, 2021 (ARPA), the third COVID-19 stimulus bill. Below is an overview of what we deem the most relevant pieces of the guidance in more detail. Thankfully, last week, the Department of Labor issued template notices and a FAQ on these topics. The Department of Labor has a webpage dedicated to the ARPA COBRA subsidy that includes an FAQ section web page. Q: Has the Department of Labor (DOL) issued guidance on the COBRA premium subsidy? The Department of Labor (DOL) has released model notices and a COBRA subsidy information website related to the COBRA subsidy that was passed as part of the American Rescue Plan Act or 2021 (ARPA). Home > American Rescue Plan Act of 2021 > American Rescue Plan Act of 2021: COBRA Subsidy, Pension Funding, and Other Employee Benefit Changes. The ARPA’s COBRA provisions permit employers who offer more than one level of health care coverage to allow anyone eligible for a COBRA subsidy to switch from a more expensive plan to a less expensive plan within 90 days of the employee’s receiving notice of this option, but this is not a … How the ARPA Is Affecting the Way Employers Approach COBRA and ERTC. March 30, 2021. For more information who qualifies as an AEI and additional requirements under ARPA, click here. The American Rescue Plan Act of 2021 (ARPA) provides a COBRA subsidy for individuals who experience a loss of group health coverage due to reduced hours or involuntary termination, but the subsidy is provided by employers and recovered as a refundable employer Medicare tax credit. U.S. legislators tasked the Department of Labor with providing the FAQs and Model Notices that pertain specifically to the ARPA COBRA subsidy and they gave the DOL a deadline of April 10th to publish the further guidance. In order to comply with the changes made by ARPA, employers will need to revise all COBRA notices and must send notice of the subsidy and the right to elect coverage to certain COBRA-eligible workers, current COBRA recipients and their dependents. This law subsidizes the full COBRA premium for “Assistance Eligible Individuals” for periods of coverage from April 1, 2021 through September 30, 2021. The American Rescue Plan Act of 2021 (ARPA) was signed into law on March 11, 2021. Model ARPA COBRA Notices Have Arrived! On April 7, 2021, the U.S. Department of Labor (DOL) issued eagerly anticipated guidance on administering COBRA subsidies under the American Rescue Plan Act of 2021 (ARPA). The DOL’s Model ARP General Notice and COBRA Continuation Election Notice,* which must include the Summary of ARPA Provisions and Request for AEI Treatment Form, allows AEIs to elect COBRA in the normal course and request the subsidy by using the form to request AEI status. The new 100 percent premium subsidy applies to individuals eligible for Consolidated Omnibus Budget Reconciliation Act (COBRA) coverage due to either a reduction in hours or an involuntary termination of employment, and it applies for the period from April 1, 2021, to September 30, 2021. As part of the American Rescue Plan Act of 2021 (“ARPA”), signed into law on March 11, 2021, employers will be required to provide, on a tax-free basis, a subsidy to employees and their qualified beneficiaries to pay 100% of the COBRA continuation premium for group health plan coverage. The guidance from the department’s Employee Benefits Security Administration includes documents – prepared in consultation with the Departments … The website will be the central location that the DOL uses to inform individuals of their potential right to take advantage of the subsidy, and to assist employers with fulfilling their … A $1.9 trillion government relief effort provides COBRA premium subsidies and extends the availability of employee tax credits, but some uncertainty remains among business leaders. (included within Summary of the COBRA Premium Assistance Provisions under the ARPA of 2021 notice) H.R.1319, Pub. The Department of Labor (“DOL”) has recently issued model notices and forms that can be used to comply with the new subsidized COBRA requirements created by the American Rescue Plan Act of 2021 (“ARPA” or “ARP”). This is also referred to as the "100% COBRA Subsidy" or "COBRA premium assistance." The Department of Labor (DOL) has released model notices and a Consolidated Omnibus Budget Reconciliation Act (COBRA) subsidy information website related to the COBRA subsidy that was passed as part of the American Rescue Plan Act of 2021 (ARPA) . There are several provisions affect employers and businesses. Model ARPA COBRA Notices Have Arrived! As explained by the U.S. Department of Labor ... (ARPA) COBRA premium assistance provisions took effect on April 1, 2021. The ARPA COBRA subsidy is provided by the federal government and not the employer. With the exception of the model notices, the guidance appears … ProBenefits Compliance Webinar on ARPA COBRA subsidy and DOL guidance. The Department of Labor (“DOL”) recently issued key guidance in the form of frequently asked questions (“FAQs”) about COBRA Premium Assistance under the American Rescue Plan Act of 2021 (“ARPA”). Action Steps: Identify COBRA qualified beneficiaries who are assistance eligible individuals; On April 7, 2021, the U.S. Department of Labor (DOL) released various documents pertaining to the COBRA premium assistance provisions contained in the American Rescue Plan Act (ARPA), including Frequently Asked Questions (FAQs) and Model Notices and election forms, as well as the launch of a page dedicated to COBRA Premium Subsidy guidance on its website. The U.S. Department of Labor (DOL) has already produced model notice forms and initial … COBRA Assistance-eligible individuals (employee, former employee, covered spouse, or covered dependent) who have lost employer provided health benefits may have 100 percent of their COBRA premiums subsidized for the period beginning … AEIs have 60 days to elect COBRA coverage for the Subsidy Period. Department of Labor Releases COBRA Subsidy Model Notices and Frequently Asked Questions As previously reported1, the American Rescue Plan Act of 2021 (ARPA) introduced a 100 percent federal subsidy of COBRA continuation coverage premiums for periods of coverage between April The Department of Labor has issued a model alternative notice to be used by these other plans to satisfy the mini-COBRA subsidy notice requirements. The Department of Labor (DOL) issued FAQs and model notices for the COBRA premium assistance provisions of the American Rescue Plan Act (ARPA). 30 days from March 11, 2021 – the U.S. Department of Labor to provide model subsidy notification notices. The model notices and election forms can be found on the Department of Labor website, and are summarized below. The DOL provided all three of these notices (plus one additional model notice) ahead of the statutory deadline. Request for Treatment as an Assistance Eligible Individual. The Department of Labor (DOL) is directed to provide a model notice by April 10, 2021. The U.S. Department of Labor has released eagerly-anticipated model notices and FAQ guidance in connection with the COBRA subsidy available under the American Rescue Plan Act of 2021 (ARPA). Under the ARPA, however, an employer must front any COBRA premium owed to a COBRA provider or plan administrator. In the meantime, we’ve broken down employers’ top ARPA COBRA-related questions below. In addition to issuing the FAQs, the DOL issued model notices and announced a new website dedicated to the COBRA premium subsidy under ARPA, which can be found at the following … For more details on the COBRA provisions of ARPA see: American Rescue Plan Act of 2021 and COBRA Subsidies. April 25, 2021. The Department of Labor (DOL) has released model notices and a Consolidated Omnibus Budget Reconciliation Act (COBRA) subsidy information website related to the COBRA subsidy that was passed as part of the American Rescue Plan Act of 2021 (ARPA) . Key dates with regard to the COBRA Subsidy: March 11, 2021 – Bill signed by President Biden. The ARPA subsidy comes on the heels of recent U.S. Department of Labor (DOL) and Internal Revenue Service (IRS) guidance extending COBRA election and premium payment deadlines and other benefit plan administration deadlines, for up to one year on a case-by-case basis. Effective Date: April 1, 2021 . A: On March 25, we reported on the 100% federally funded COBRA premium subsidy included in the American Rescue Plan Act (ARPA), noting the need for additional guidance on a number of issues. This year, the American Rescue Plan Act (ARPA) included big changes to COBRA. ARPA is a 628-page document that impacts a number of different industries, sectors, and entities.Below is a summary of the provisions that most directly impact our readership. The Department of Labor ("DOL") recently issued a guidance related to the federal subsidy of COBRA premiums ("Premium Subsidy") from April 1, 2021, through September 30, 2021 (the "Subsidy Period"). The new model notices are: 1. Interested parties are encouraged to … In response to questions from stakeholders, the Department of Labor (DOL) issued FAQs on April 7, providing much needed guidance on the COBRA premium subsidy. 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”). The Department of Labor recently issued FAQs addressing basic questions regarding the American Rescue Plan Act’s requirement that employers and health plans subsidize COBRA between April 1, 2021 and September 30, 2021 for assistance eligible individuals. On April 7, 2021, the U.S. Department of Labor (DOL) issued guidance in the form of Frequently Asked Questions (FAQs) regarding the ARP COBRA subsidy. The term "COBRA premium assistance" is used in the Notice. General COBRA FAQs for Employers. While the FAQs … The American Rescue Plan Act (ARPA), which was recently signed into law, has a temporary subsidy provision designed to help certain individuals enrolled in COBRA or state continuation coverage pay for their continuation health insurance coverage during the COVID-19 pandemic. Apr 09, 2021. Employees who are covered under a group health plan and experience a qualifying event, such as termination of employment, may be eligible to continue their health insurance coverage for … / in Employee Benefits. It is essentially the DOL’s standard COBRA general notice with ARPA information woven throughout. The Internal Revenue Service (IRS) and/or the Department of Labor (DOL) may issue additional guidance in the near future. Summary . Model notices should be issued by the U.S. Department of Labor in the next few weeks. The federal COBRA law allows employees at larger businesses (20 or more employees) to purchase continuation health coverage after they leave employment for 18 months (or, in some cases, 36 months) after their employment ends. 4. The model notices and election forms may be used by employers to notify Assistance Eligible Individuals of the availability of the COBRA premium subsidy. COBRA Continuation Coverage under the America Rescue Plan Act (ARPA) – What Employers Need to Know by Marsha R. Kunz, Director of Human Resources The American Rescue Plan Act of 2021, signed into law by President Biden on March 11, 2021, provides for a 100% COBRA premium subsidy for employees and/or their covered dependents […] 1. As explained by the U.S. Department of Labor ... (ARPA) COBRA premium assistance provisions took effect on April 1, 2021. On April 7, 2021, the U.S. Department of Labor (DOL) released a link to its webpage dedicated to the COBRA premium assistance authorized under the American Rescue Plan Act, 2021 (ARPA), the third COVID-19 stimulus bill. The Department of Labor is expected to release model language to assist employers with these revised notice requirements. Employers should brace themselves for a heap of administrative work in the coming weeks. We previously discussed the ARPA COBRA subsidies in our prior blog . DOL Issues Guidance and Model Notices for ARPA COBRA Subsidy The American Rescue Plan Act of 2021 (ARPA) includes a 100% COBRA subsidy for assistance eligible individuals beginning on April 1, 2021. On April 7, 2021, the Department of Labor (DOL) issued initial guidance along with four model notices. Sponsors of group health plans have new responsibilities following the passage of the American Rescue Plan Act (“ARPA”) on March 11, 2021.