As If Employers Didn’t Have Enough to Worry About, Don’t Skip the ARPA Cobra Subsidy Expiration Notice

Daniel L. Morgan 

As we explained in our April 16, 2021, post, the American Rescue Plan Act of 2021 (“ARPA”) requires employers to subsidize the cost of Consolidated Omnibus Budget Reconciliation Act (“COBRA”) continuation coverage and state mini-COBRA coverage, if COBRA doesn’t apply, for qualified beneficiaries who become eligible for and elect COBRA (or a state’s mini-COBRA) benefits as a result of an employee’s loss of health plan coverage due to an involuntary termination of employment (other than for gross misconduct) or a reduction of hours. ARPA refers to people who satisfy these requirements as “Assistance Eligible Individuals.”

As explained in our earlier post, the COBRA and mini-COBRA premium subsidy is available only from April 1, 2021, through September 30, 2021.

One of the requirements of ARPA is that Assistance Eligible Employees must be notified 15 to 45 days before their premium subsidy ends that their subsidy is expiring. In the case of Assistance Eligible Individuals who are currently receiving the premium subsidy, this means that the expiration notice must be provided no later than September 15, 2021. Not meeting this deadline may result in the imposition of penalties. The Department of Labor’s model notice can be found at

Employers should contact their health plan insurers or COBRA administrators to confirm that they are sending the Notices out.

Please reach out if you have any questions or need assistance.

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