COBRA Subsidy Requirement is Here
April 8, 2021
On March 26, 2021, the Firm provided a “heads-up” with respect to the new COBRA Premium Subsidy Program contained in the American Rescue Plan Act (ARPA). As we discussed, the COBRA Premium Subsidy Program allows for a 100% subsidy of COBRA premiums for Assistance Eligible Individuals (AEI) that are qualified COBRA beneficiaries due to involuntary termination from employment or reduction in hours. Employers will be responsible for paying the AEI’s COBRA premium during the Covered Period and can then claim a credit against payroll tax for the amounts paid. We indicated that the Department of Labor was to issue Model Notices of the type required under the ARPA. Those Model Notices (and FAQs concerning the Subsidy) have now been issued and can be accessed at the following links:
- FAQs about COBRA premium assistance under the American Rescue Plan Act
- Model General Notice and COBRA Continuation Coverage Election Notice
- Model Notice in Connection with Extended Election Period
- Model Alternative Notice
- Model Notice of Expiration of Premium Assistance
- Summary of COBRA Premium Assistance Provisions under the American Rescue Plan Act of 2021
For more information on the ARPA COBRA Premium Subsidy Program, please contact Scopelitis Partner Steve Pletcher
News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.
COBRA Subsidy Requirement is Here
April 8, 2021
On March 26, 2021, the Firm provided a “heads-up” with respect to the new COBRA Premium Subsidy Program contained in the American Rescue Plan Act (ARPA). As we discussed, the COBRA Premium Subsidy Program allows for a 100% subsidy of COBRA premiums for Assistance Eligible Individuals (AEI) that are qualified COBRA beneficiaries due to involuntary termination from employment or reduction in hours. Employers will be responsible for paying the AEI’s COBRA premium during the Covered Period and can then claim a credit against payroll tax for the amounts paid. We indicated that the Department of Labor was to issue Model Notices of the type required under the ARPA. Those Model Notices (and FAQs concerning the Subsidy) have now been issued and can be accessed at the following links:
- FAQs about COBRA premium assistance under the American Rescue Plan Act
- Model General Notice and COBRA Continuation Coverage Election Notice
- Model Notice in Connection with Extended Election Period
- Model Alternative Notice
- Model Notice of Expiration of Premium Assistance
- Summary of COBRA Premium Assistance Provisions under the American Rescue Plan Act of 2021
For more information on the ARPA COBRA Premium Subsidy Program, please contact Scopelitis Partner Steve Pletcher
News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.