Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) now covered through the ARPA

Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) 

now covered through the ARPA

On April 1st, 2021 the American Rescue Plan Act (ARPA) began to cover 100% of COBRA premiums through September 30th, 2021.

What is COBRA?

COBRA is an act passed in 1986 that requires group health plans by employers so that employees would still be covered under a group health plan when it was lost in certain circumstances.

Such as:

• Reduction in hours
• Termination 

Typically, individuals are allowed to keep their coverage for 18 months, but that can vary from state to state. Many people eventually decline coverage due to the fact the group health can require those to pay 102% of the premium to continue their health coverage.

Under the ARPA, from April 1st – September 30th, 100% of the COBRA cost will be covered for individuals who are eligible for assistance.

View this bulletin from HR Compliance for more information on who is eligible for COBRA coverage through the ARPA.