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COBRA Premium Subsidy Notices under American Rescue Plan Act of 2021

As discussed in our previous post, the American Rescue Plan Act of 2021 (the “Plan”) imposed various requirements on employers. Among these requirements are COBRA subsidies for employees and their covered family members who have lost their group health insurance due to an involuntary termination or reduction in hours.

The federal Department of Labor recently released updated FAQ guidance to further assist employers in complying with the Plan’s requirements. In addition to standard COBRA notice requirements, the Plan also requires the following:

  • Notice of Extended COBRA election period: Individuals who had a qualifying event before April 1, 2021, must be provided notice of an extended election period within 60 days following April 1, 2021 (i.e., by May 31, 2021).
  • General Notice to individuals who have a qualifying event from April 1, 2021 through September 30, 2021.
  • Notice of Expiration of Premium Assistance to notify individuals who have a qualifying event that their premium assistance will expire soon, the date of the expiration, and that the individual may be eligible for coverage without any premium assistance through COBRA continuation coverage or coverage under a group health plan. The notice must be provided 15-45 days before the individual’s premium assistance expires.

For additional information, please contact one of the authors listed above, or any member of our Labor & Employment Law Practice Group.

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