Congress passed the American Rescue Plan Act of 2021 on March 10, 2021. The Act includes a 100% subsidy available to contain COBRA qualified beneficiaries who lose Group Health Plan as a result of an involuntary termination or reduction in hours.
Who Qualifies for a Subsidy?
An Assistance Eligible Individual (A.E.I.) qualifies for the subsidy.
- New COBRA Qualified Beneficiaries on or after April 1, 2021 – but before September 30, 2021
- Existing COBRA Qualified Beneficiaries: those who currently have COBRA coverage and continue COBRA between April 1, 2021 – September 30, 2021
- Second Change COBRA Qualified Beneficiaries: individuals who were COBRA qualified due to involuntary termination of employment or reduction in hours, but, either 1) Did not elect COBRA, or 2) Elected then dropped COBRA
There are multiple notice requirements with the subsidy.
Questions? Please call our office or contact your favorite Basi agent! (209) 847-3065