Special Compliance Alert: Significant Employee Benefits Changes Contained in the American Rescue Plan Act of 2021
Quick Facts ARPA creates a federal subsidy that will cover 100% of COBRA premiums for certain Qualified Beneficiaries. The subsidy runs from April 1, 2021, through September 30, 2021. Individuals who previously experienced an involuntary termination, or reduction in hours, but did not elect COBRA, or dropped COBRA coverage, but are still within their COBRA maximum coverage period, are allowed a chance to enroll or re-enroll. Congress passed the $1.9 trillion COVID relief bill, the American Rescue Plan Act of 2021 (ARPA). The bill includes significant employee–benefits-related provisions including a federal subsidy that will cover 100 …
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