Sept. 15 Is Final Deadline for ARPA COBRA Subsidy Expiration Notices

Section 9501 of the American Rescue Plan Act of 2021 (“ARPA”) requires employers, insurers and multiemployer trustees (collectively, “plan administrators”) to provide a 100% subsidy for COBRA health care continuation coverage (including under states’ mini-COBRA laws) to “assistance eligible individuals” (“AEIs”) for the period from April 1 through Sept. 30, 2021.

Among its various notice requirements, ARPA requires plan administrators to give advance notice to AEIs when their ARPA COBRA subsidy period is coming to an end (the “expiration notice”). The expiration notice must be sent to AEIs not earlier than 45 days, and not later than 15 days, before the expiration date of the AEI’s subsidy period. Now that Sept. 30, 2021—the last day of the subsidy period—is in sight, plan administrators should be preparing to send out the final round of these expiration notices to AEIs. The last day on which these expiration notices should be sent is Sept. 15, 2021.

The expiration notice must be written in clear and understandable language to communicate that: (1) the ARPA COBRA subsidy for such individual will expire soon and the prominent identification of the date of such expiration and (2) such individual may be eligible for coverage without any subsidy through COBRA continuation coverage or coverage under a group health plan. The U.S. Department of Labor (DOL) prepared a model expiration notice in English and Spanish.
 

How We Can Help

For more information about the ARPA COBRA premium assistance, see our prior client alerts:

• No Fooling Around: New Six-Month COBRA Subsidy Starts April 1, Requires Immediate Action (March 30, 2021)

• ARPA COBRA Subsidy Model Notices and Guidance Released Today Requires Immediate Action (April 9, 2021)

• What Is An Involuntary Termination Or Reduction In Hours For ARPA COBRA Premium Assistance? (May 19, 2021)

Please contact one of us or your regular Brownstein attorney for answers to your questions about the ARPA COBRA subsidy or any other benefits and executive compensation questions you may have.

This document is intended to provide you with general information regarding employee benefits issues. The contents of this document are not intended to provide specific legal advice. If you have any questions about the contents of this document or if you need legal advice as to an issue, please contact the attorneys listed or your regular Brownstein Hyatt Farber Schreck, LLP attorney. This communication may be considered advertising in some jurisdictions.