On March 11, 2021, the American Rescue Plan Act of 2021 (ARP) became law in the United States. Provisions of this law state that employers are now required to pay a 100% subsidy of the Consolidated Omnibus Budget Reconciliation Act (COBRA) continuation coverage premiums for certain people during the period of April 1, 2021, through September 30, 2021. Employers are to receive a reimbursement from the federal government via a tax credit. This article will provide employers with a summary of the COBRA subsidy rule that is contained within ARP and some tips on complying therewith.
