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In the American Rescue Plan Act of 2021 (“ARPA”), Congress provided 6 months of free COBRA coverage for certain individuals who are eligible for COBRA continuation coverage due to a qualifying event that is a reduction in hours or an involuntary termination of employment. Employers need to take prompt action to comply with new notice and election requirements as outlined in recent guidance issued by the U.S. Department of Labor (“DOL”).
Who Is Eligible:
Assistance Eligible Individuals (“AEIs”) are COBRA qualified beneficiaries:
a. whose COBRA qualifying event was either a reduction in hours or an involuntary termination of employment;
Monday, May 10, 2021
In the American Rescue Plan Act of 2021 (“ARPA”), Congress provided 6 months of free COBRA coverage for certain individuals who are eligible for COBRA continuation coverage due to a qualifying event that is a reduction in hours or an involuntary termination of employment. Employers need to take prompt action to comply with new notice and election requirements as outlined in recent guidance issued by the U.S. Department of Labor (“DOL”).
Who Is Eligible:
Assistance Eligible Individuals (“AEIs”) are COBRA qualified beneficiaries:
a. whose COBRA qualifying event was either a reduction in hours or an involuntary termination of employment;
Employers Need to Gear Up for ARPA s COBRA Subsidy | Blank Rome LLP jdsupra.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from jdsupra.com Daily Mail and Mail on Sunday newspapers.
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).
The APRA requires plan sponsors to provide specific notification of the COBRA premium subsidy to Eligible Individuals, along with notification of any early termination of the subsidy prior to September 30, 2021 (with certain exceptions). In addition, the ARPA requires the secretary of the Department of Labor, in consultation with the secretary of the Department of the Treasury and the secretary of the Department of Health and Human Services (collectively, agencies), to provide model notices within 30 days of enactment. In accordance with that requirement, the Department of Labor’s Employee Benefits Security Administration issued model notices on