COBRA Subsidy Provisions of the American Rescue Plan Act - Employer Webinar
The American Rescue Plan Act (ARPA), was signed into law on March 11, 2021. A primary purpose of the law was to provide financial assistance with obtaining or retaining health insurance. To that end, ARPA provides a 100% subsidy of COBRA premiums for six months for eligible individuals. For smaller employers who fall under the COBRA threshold, ARPA requires employers to pay 100% of state continuation coverage, also known as mini-COBRA.
ARPA subsidies cover the full cost of COBRA and mini-COBRA premiums from April 1, 2021 through September 30, 2021 if the employee lost or loses group health insurance due to an involuntary job loss or reduction of work hours.
Join our team as we provide clarification and recommendations as to what employers need to do in order to comply with this new law.