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American Rescue Plan COBRA Notices Available

    April 15, 2021

    The American Rescue Plan Act of 2021 (ARP) provides temporary premium assistance for COBRA continuation coverage and, where the employer elects to offer the option, an opportunity to switch to a different health plan option offered by the employer.

    Premium assistance is available to certain individuals who are eligible for COBRA continuation coverage due to a qualifying event that is a reduction in hours or an involuntary termination of employment. If the employee/terminated employee qualifies for premium assistance, they do not need to pay any of the COBRA premium otherwise due to the plan for the months when they are eligible for premium assistance.

    This premium assistance is available from April 1, 2021 through September 30, 2021. If the eligible employee/terminated employee choose to continue your COBRA continuation coverage beyond that date, they may have to pay the full COBRA premium amount due. However, when the premium assistance ends, they may qualify for a special enrollment period to enroll in coverage through the Health Insurance Marketplace.  For more information check out the US DOL link below