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Less than a month after the American Rescue Plan Act of 2021 (ARPA)
was signed into law, new U.S. Department of Labor (DOL) guidance
and model forms are clearing up a number of employer concerns about
the 100 percent COBRA coverage subsidy for continuing
health benefits that runs from April 1, 2021, to September 30,
2021.
Though employers still await COBRA premium subsidy regulations,
including guidance from the Internal Revenue Service (IRS) on
claiming reimbursements, on April 7, 2021, the DOL s Employee
Benefits Security Administration (EBSA) issued guidance in the form
The American Rescue Plan Act of 2021, signed by President Biden on March 11, 2021, (“ARPA”) includes generous provisions granting eligible individuals who have lost their jobs or had a.
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The American Rescue Plan Act of 2021 (ARPA) includes a subsidy structure that is designed to fully subsidize COBRA for employees and family members losing group health plan coverage due to an involuntary termination of employment or reduction in hours. The 100 percent subsidy (Subsidy) begins April 1, 2021 and runs through September 30, 2021. The premiums are to be paid by employers, who can recover these payments via a refundable tax credit on their quarterly payroll taxes. On April 8, 2021, the Department of Labor (DOL), issued guidance and model notices that clarified some areas of uncertainty. This alert provides updates to our March 12 alert.
Less than a month after the American Rescue Plan Act of 2021 (ARPA) was signed into law, new U.S. Department of Labor (DOL) guidance and model forms are clearing up a number of employer.
To print this article, all you need is to be registered or login on Mondaq.com.
On April 7, 2021, the Department of Labor (the DOL) issued
guidance (the Guidance) and model notices and forms for the
COBRA subsidy provision of the American Rescue Plan Act (the Act).
Although the Guidance, a series of frequently asked questions, is
directed to COBRA qualified beneficiaries, it provides useful
information to employers and service providers tasked with
administering the COBRA subsidy. Nonetheless, several important
questions remain unanswered including, most significantly, the
logistics of claiming a refundable federal tax credit to offset
employer-subsidized COBRA premium payments and the meaning of