COBRA Subsidy Expiration Notice is Due September 15

By: Brydon M. DeWitt & Claire G. Pollock*

The American Rescue Plan Act of 2021 (the ARPA), signed into law this spring, included premium relief to certain COBRA-qualified beneficiaries that is set to expire September 30, 2021. See Williams Mullen’s prior alert on the ARPA. 

COBRA Premium Assistance. The ARPA provides a 100% subsidy of COBRA continuation coverage premiums for a six-month period from April 1, 2021 through September 30, 2021. Individuals and their family members who lost group health coverage due to an involuntary termination of employment or reduction in hours were eligible for the subsidy if the individual was eligible for COBRA during the subsidy period.

Expiration Notice. Employers must provide assistance-eligible individuals who are currently receiving the COBRA subsidy a notice at least 15 days (but not more than 45 days) before the expiration of the subsidy Therefore, such eligible individuals must receive notice no later than September 15, 2021 that their premium assistance will end and that they may be eligible for regular COBRA coverage or coverage under another group health plan or the Health Insurance Marketplace. Department of Labor model notices are found here.

*non-attorney