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ARPA COBRA Subsidy 101

March 31, 2021

Via: HR Hero
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The American Rescue Plan Act of 2021 (ARPA) has some new rules related to the Consolidated Omnibus Budget Reconciliation Act (COBRA). Any employer that has a health plan subject to COBRA should be aware of these changes. Let’s take a look at the basics of what ARPA will implement.

COBRA Subsidies Available April–September 2021

ARPA provides a full 100% COBRA premium subsidy for anyone who is qualified (more on that in a moment) and eligible for COBRA between April 1, 2021, and September 30, 2021. This means that anyone qualified who is already enrolled in COBRA coverage and still eligible for time during that period would be able to take advantage of that subsidy for whatever amount of time they qualify, up to the full 6 months. This subsidy is not taxable.

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