ARPA Changes COBRA – What You Need to Know

Under the new American Rescue Plan Act (ARPA), among other significant items, imposed new obligations for employers pursuant to COBRA (Consolidated Omnibus Budget Reconciliation Act). COBRA allows group coverage to continue after specific events. ARPA requires employers to provide COBRA premium subsidies to certain employees from April 1, 2021 through Sept. 30, 2021. It’s important to know if your insurance plan will be affected by this law. That is why Hafetz and Associates is here to guide you through it. 

The Subsidy applies to specific groups and events. For more details, view our HR Compliance Bulletin COBRA Subsidy Provisions of the American Rescue Plan Act, which highlights eligibility, funding, and switching coverage. 

Employers that do NOT have a third-party COBRA administrator and those that are under 20 employees and subject to New Jersey Continuation (mini-COBRA) rules are required to notify their employees about the COBRA subsidies and the change in benefits under ARPA. If you need assistance notifying your employees of these changes, our Legal Update FAQs for COBRA Subsidy in the ARPA provides more information.

As always, Hafetz is here to help. Give us a call or complete our online form and one of our knowledgeable brokers will contact you promptly. 



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