Question of the Week

Posted by BAS - 06 May, 2021

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Q.- Is free COBRA automatically given to anyone who had a reduction in hours or was involuntarily terminated?

A.- No. The ARP premium subsidy is not automatic. A person must elect COBRA continuation coverage and also apply for the subsidy by completing the form “Request to be Treated as an Assistance Eligible Individual.” The form must be completed so the plan knows that the individual is not eligible for other coverage or Medicare.

If a person is given the COBRA premium subsidy and is eligible for other health coverage or Medicare, they will be subject to tax penalties.

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


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