DOL Publishes FAQ Guidance and Model Notices Regarding the COBRA Subsidy Available Under the American Rescue Plan Act

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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. Employers are required to offer subsidized COBRA coverage between April 1 and September 30, 2021 (the “Subsidy Period”). Today, April 7, 2021, the Department of Labor's Employee Benefits Security Administration published a new webpage with resources for employers, advisers, and workers about the COBRA premium assistance under ARPA, including frequently asked questions (FAQs) and model notices. The guidance is available at: https://www.dol.gov/agencies/ebsa/laws-and regulations/laws/cobra/premium-subsidy.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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