Recently Congress passed the American Rescue Plan Act of 2021, which can provide a COBRA premium assistance opportunity for qualified individuals who previously were offered COBRA benefits by you as their former employer. Attached and below you will find additional information, which identifies who may be eligible, the qualification timetable, the period of time the COBRA subsidy can be used, and what your required action items are for your compliance.
To download this notice click here.
Qualified individuals who may be eligible for the COBRA subsidies are individuals who lost their group health insurance coverage through their employer as early as October 1, 2019, through April 1, 2021, due to any of the following reasons.
- Reduction of Hours
- Status Change from full-time to part-time
- Temporary leave of absence
- Involuntary termination (other than “Gross Misconduct”)
If you have former associates who were previously sent a COBRA notification during the time frame above, action items are necessary for your compliance to the American Rescue Plan Act of 2021.
Please thoroughly review the attached information including the “Frequently Asked Questions” as it is imperative. We are available for any additional questions and concerns you may have.
Your VertiSource HR Team