New Guidance Issued on COBRA Subsidy Mandate

The new COVID-19 relief law, the American Rescue Plan Act (ARPA), includes a COBRA premium subsidy applicable to group health plan sponsors. This COBRA subsidy could affect many businesses as it generally requires employers to cover 100% of the cost of COBRA continuation coverage from April 1 through the end of September.

The U.S. Department of Labor has issued its guidance on implementing the ARPA’s premium assistance provisions to provide full COBRA premium assistance to individuals who have experienced a reduction in hours or involuntary termination of employment.

OMA Connections Partner Thompson Hine will be conducting two free webinars — one on April 15 and one on April 28 — to provide an overview of the subsidy provisions, as well as guidance to help employers anticipate and address compliance challenges. 4/7/2021

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