As discussed in our April 28, 2021 blog post concerning COBRA (and state mini-COBRA) premium subsidies under the American Rescue Plan Act of 2021, employers and plan administrators are required to notify employees and former employees who have made a COBRA or mini-COBRA election when the federal subsidies that pay for the costs of their health insurance premiums are about to end. This notice must be provided 15-45 days before the individual’s premium will no longer be paid for through the federal subsidy. The notice must explain that the individual’s assistance will expire soon, the expiration date, and that the individual may be eligible to continue health insurance continuation coverage through COBRA or another group health insurance plan even though the subsidy is no longer available.
The subsidies for COBRA and min-COBRA premiums available under the American Rescue Plan will end on September 30, 2021. Therefore, for any individuals still receiving the subsidy, the required notice must be provided no later than September 15, 2021. The Department of Labor has created a model Notice of Expiration of Period of Premium Assistance, which can be found here.
Please contact us if you have any questions regarding these obligations.