On March 11, 2021, President Biden signed into law the American Rescue Plan Act (ARPA) that contains a new, temporary COBRA subsidy. The ARPA COBRA subsidy requires employers to cover 100% of an employee’s cost of continuing group health coverage under COBRA from April 1, 2021 through September 31,
Articles about the federal Consolidated Omnibus Budget Reconciliation Act (COBRA)
In our most recent summary of IRS Notice 2021-31, we noted the Internal Revenue Service provided much-needed clarity to looming compliance challenges as employers, insurers, and others race to implement the applicable COBRA premium subsidy provisions of the American Rescue Plan Act of 2021 (ARPA). While there are many other
The American Rescue Plan Act of 2021 (ARPA) implemented a 100 percent COBRA subsidy for certain qualified beneficiaries beginning on April 1, 2021, and ending September 30, 2021. On May 18, 2021, more than a month into the subsidy period, the Internal Revenue Service (IRS) released Notice 2021-31. This guidance,
As noted in our previous alerts regarding the American Recovery Plan Act (ARPA) COBRA subsidies and return to work issues, employers have until May 31, 2021, to notify “Assistance Eligible Individuals” of their potential right to subsidized COBRA coverage during the six-month period from April 1 to September 30, 2021
On May 18, 2021, the Internal Revenue Service (IRS) issued Notice 2021-31 which contains much anticipated guidance needed to implement the COBRA subsidy provisions included in the American Rescue Plan Act of 2021 (ARPA).
The new 100 percent premium subsidy applies to individuals eligible for Consolidated Omnibus Budget Reconciliation Act (COBRA) coverage due to either a reduction in hours or an involuntary termination of employment, and it applies for the period from April 1, 2021, to September 30, 2021. The U.S. Department of Labor
Introduction. In mid-March, President Biden signed the American Rescue Plan Act of 2021 and included in its many provisions for providing COVID relief and economic stimulus is the six-month COBRA Premium Assistance (a/k/a COBRA subsidy).
As discussed in our recent client alert on the new COBRA subsidy, a provision of the American Rescue Plan Act (ARPA) requires employers to pay COBRA premiums for eligible employees who lost group health coverage due to reduced hours or involuntary termination and employers will receive a reimbursement in the form of a tax credit on their quarterly tax payment. This subsidy is available for 6 months, from April 1, 2021 to September 30, 2021, but does not extend the normal 18-month period for COBRA coverage. Given the administrative challenges the ARPA COBRA subsidy presents to employers, on April 7, 2021 the Department of Labor (DOL) issued guidance and model notices for implementing the provision’s requirements.
On March 11, 2021, President Biden signed the $1.9-trillion COVID-19 relief package, American Rescue Plan Act of 2021 (ARPA), into law. ARPA included a number of provisions that address COVID-19-related employment issues, including a 100-percent Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) subsidy to provide assistance to eligible individuals (AEI). This subsidy applies to medical, dental, and vision plans, however, it does not apply to health flexible spending accounts.
On April 7, 2021, the Department of Labor (DOL) created a new webpage to provide guidance related to an employer’s obligations to comply with the mandated COBRA premium assistance under The American
On March 11, 2021, President Biden signed into law the American Rescue Plan Act (ARPA) that contains a new, temporary COBRA subsidy.
Less than a month after the American Rescue Plan Act of 2021 (ARPA) was signed into law, new U.S. Department of Labor (DOL) guidance and model forms are clearing up a number of employer concerns about the 100 percent COBRA coverage subsidy for continuing health benefits that runs from April
Hot off the presses! On April 7, 2021, the DOL’s Employee Benefits Security Administration issued guidance related to the implementation of ARPA’s COBRA subsidy provisions. The guidance includes frequently asked questions, a summary of the related provisions, model notices, and a Federal Register Notice.
On April 7, 2021, the U.S. Department of Labor (DOL) issued eagerly anticipated guidance on administering COBRA subsidies under the American Rescue Plan Act of 2021 (ARPA). The guidance includes Frequently Asked Questions (FAQs) and various Model Notices and election forms implementing the COBRA Premium Assistance provisions under ARPA, while
The American Rescue Plan Act (ARPA), signed into law on March 11, 2021, requires employers to provide subsidized COBRA coverage to employees (and family members) who qualify for COBRA due to an involuntary termination of employment or reduction in hours.