The American Rescue Plan Act (ARPA) assists qualifying individuals who have lost employer coverage due to involuntary employment termination or reduction of hours by allowing them to opt for COBRA coverage at no cost for a limited time.
HMAA notified applicable employers of the COBRA subsidy provisions and included a list of potential assistance eligible individuals (AEIs). HMAA sent notices and election forms to AEIs in late May 2021. The Special Election Period ends 60 days after the notice was received, so please ensure election forms are submitted before the deadline for those applying for the subsidy.
During the subsidy period, which ends no later than September 30, 2021, plan sponsors will pay COBRA premiums for their AEIs. The full amount of the premium will be reimbursed by the federal government via an employer tax credit.
