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Among the American Rescue Plan Act of 2021's many economic stimulus provisions is a temporary subsidy for COBRA coverage that will undoubtedly be a significant benefit for individuals who lost health coverage during the pandemic, but which is just as certain to be a tremendous administrative burden for employers and group health plans.
Overview
The Act includes premium assistance covering 100% of the cost of COBRA continuation coverage for certain "assistance eligible individuals" (AEIs) under group health plans. The premium assistance is available to AEIs for the six-month period from April 1, 2021, through September 30, 2021 (or any portion of that six-month period during which an AEI has continuation coverage).
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