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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.
President Biden signed the American Rescue Plan Act of 2021 ("ARPA") into law on March 11, 2021. Among its provisions that seek to provide relief to individuals affected by the COVID-19 pandemic.