COBRA Subsidy Ending

Posted by BAS - 16 September, 2021


The American Rescue Plan Act created a 100% COBRA premium subsidy for certain individuals entitled to COBRA due to reduction of hours or involuntary termination of employment. To be eligible for the subsidy, the COBRA qualified beneficiary must have had a qualifying event that was a reduction in hours or involuntary termination of employment, elected COBRA, elected to be considered an assistance-eligible individual, and not been eligible for other group health coverage or Medicare. See our article about the ARPA premium subsidy here.

The premium subsidy is coming to an end September 30, 2021. Plans had to communicate the end of the subsidy to those receiving coverage by September 15, 2021.

Starting October 1, 2021, plans may once again collect the full premium amount for those who were receiving the ARPA premium subsidy. While COVID extended payment timeframes may still apply, COBRA administration will go back to pre-ARPA rules starting October 1.

BAS, though Cobra Control Services, LLC, provides COBRA and continuation-of-coverage administrative services. For more information, contact your account manager or

Topics: COBRA, HR & Benefits Compliance, HR & Benefit Plans, HR & Benefits News

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