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DOL Issues ARPA COBRA Subsidy Model Notices and FAQs | Morgan Lewis - ML Benefits

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 no ....

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Guidance Issued on Implementation of ARPA COBRA Premium Subsidy | Saul Ewing Arnstein & Lehr LLP

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Group health continuation coverage under the Consolidated Omnibus Reconciliation Act of 1985 (“COBRA”) permits certain group health coverage to be continued by participants and beneficiaries (“qualified beneficiaries”) when coverage is lost due to certain “qualified events,” such as termination of employment or a reduction of hours.
Under Section 9501 of the American Rescue Plan Act of 2021 (“ARPA”), an “assistance eligible individual” (“AEI”) is not required to pay the cost of COBRA coverage (“COBRA Subsidy”) for the period beginning April 1, 2021 through September 30, 2021 (“Subsidy Period”). The Employee Benefits Security Administration has issued guidance, including Frequently Asked Questions (“FAQs”) and Model Notices related to the COBRA Subsidy. Employers offering COBRA are required to provide the COBRA Subsidy to any AEI, which they then can recoup through a payroll t ....

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Free And Extended COBRA Coverage Under ARPA

Free And Extended COBRA Coverage Under ARPA
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DOL Issues Model Notices for COBRA Premium Assistance | Bradley Arant Boult Cummings LLP

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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. ....

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DOL Clarifies Key Provisions, Issues Model Notices for COBRA Relief Under ARPA | Snell & Wilmer

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On March 11, 2021, President Biden signed into law the American Rescue Plan Act (“ARPA”). We previously summarized the provisions of ARPA that significantly and immediately impact group health plans in our
SW Benefits Update, “Help Is on the Way – Important Changes to COBRA Under the American Rescue Plan Act.”
Among the most important changes, ARPA provides (i) a subsidy for certain insurance premiums under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), (ii) an opportunity for certain individuals to enroll or re-enroll in COBRA continuation coverage, and (iii) an option to elect less expensive health coverage. ARPA also imposes several imminent notice requirements, which are summarized in the above SW Benefits Update. ....

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