What You Need to Know About the American Rescue Plan Act

posted 4/28/2021 in Insurance

American Rescue Plan Act

On March 11, the American Rescue Plan Act (ARPA) was signed into law to provide financial assistance to employers and individuals affected by COVID-19. One of the provisions implemented by ARPA affects the eligibility requirements for certain individuals to receive a COBRA subsidy.

As your trusted health insurance agent, we want to inform you of the COBRA subsidy requirements under ARPA and provide helpful resources.

If you have COBRA eligible beneficiaries who experienced an involuntary termination of employment or reduction of hours, you have until May 30, 2021, to notify them about the subsidy and extended COBRA election period.  Also required is a notice of expiration explaining when an individual's premium assistance is about to end.

This expiration notice should advise the individual that they may be eligible for coverage without any premium assistance through COBRA continuation coverage, another group health plan, Medicaid, or the Health Insurance Marketplace. The expiration notice must be provided 15 to 45 days before the individual's premium assistance expires. The Department of Labor (DOL) recently released model notices you can use to inform COBRA eligible individuals. To view the model notices, please click here.

To provide further assistance, the DOL also released an FAQ regarding the COBRA subsidy.

This FAQ covers:

  • What makes an individual eligible to receive a COBRA subsidy
  • How individuals can apply for the COBRA premium assistance
  • What information must be included in the notices
  • And more!

Click here to view the FAQ 

We’re here to guide you through this process. If you have any questions on the COBRA subsidy and how it may affect you as an employer offering benefits, please contact our insurance agents to learn more and discuss.

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