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of COBRA Premium Assistance Provisions under the American Rescue Plan Act of 2021 (including a “Request for Treatment as an Assistance Eligible Individual” Form)
The “summary” portion of this notice must be included with all three notices listed above: (i) the General Notice; (ii) the Notice in Connection with Extended Election Period; and (iii) the Model Alternative Notice. The “request” portion enables individuals to request premium assistance or to discontinue it.
Next Steps and Takeaways
With the model notices now available, employers are well-advised to begin the notification process for impacted employees, including by contacting their COBRA vendors and administrators to ensure that each AEI receives the appropriate notice. In particular, employers should not overlook those AEIs eligible for a “second chance” notice, which must be sent to them no later May 31, 2021.
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As discussed in a previous alert, The American Rescue Plan Act (ARPA) provides 100% subsidized premiums for health care continuation coverage under COBRA for eligible individuals and their dependents.
The subsidized premiums are available from April 1, 2021, through September 30, 2021 (the “Premium Assistance Period”), unless earlier terminated as discussed below.
The Department of Labor (DOL) was charged with preparing model notices for employers, plan administrators, or insurance companies to send to eligible individuals, advising them of their rights in connection with the free COBRA subsidy. The following notices were made available on April 8, 2021 (DOL Resources on COBRA Premium Subsidy). Employers are encouraged to use the model notices.
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On April 7, 2021, the U.S. Department of Labor (DOL) issued welcome guidance–including eagerly-anticipated model notices–to help employers and their COBRA administrators implement the temporary six-month (April 1 to September 30, 2021) COBRA premium subsidy provided under the American Rescue Plan Act of 2021 (“ARP”) with respect to certain individuals who have lost or who will lose employer-sponsored group health coverage due to a reduction in hours or involuntary termination of employment.
DOL Guidance Packet. The DOL’s guidance packet consists of the following items:
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A COBRA Premium Subsidy dedicated web page, available at https://www.dol.gov/agencies/ebsa/laws-and-regulations/laws/cobra/premium-subsidy, providing not only guidance about the ARP COBRA premium subsidy, but also previously-issued COBRA guidance for individuals (including
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As we discussed in a previous article, the American Rescue Plan Act of 2021 (ARP), provided premium assistance and an extended election period under COBRA and similar state laws for “assistance eligible individuals” (AEIs). Employers were required to provide certain notices to individuals regarding the premium assistance and extended election period, and the Department of Labor (DOL) was directed to issue model notices for such purposes. The DOL has now issued the model notices and has provided some further guidance on these provisions of the ARP. Employers must now expeditiously review these model notices, adapt them as necessary, and establish administrative processes for completing and furnishing the notices.