NEW COBRA Subsidy – Do You Qualify?

Date: Mar 25, 2021
By: Basi Insurance

Illustration of 2 cliffs with a bridge in between. The bridge is composed of the words: short term health insurance COBRA

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.

A.E.I. includes:

  • 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

Recent Posts

We want you to know how to protect yourself, your family, and your businesses. Follow our blog for helpful tips, industry news, insight into current events, and more.

Why is Water Safety So Important? This blog and video were prompted by an incident experienced by a member of ...
stethoscope arranged in heart shape

NEW COBRA Subsidy – Do You Qualify?

Congress passed the American Rescue Plan Act of 2021 on March 10, 2021. The Act ...
ring going down the drain

My Ring Went Down the Drain! Now What?

First, check out this video to hopefully retrieve it (*Please note:  we have no affiliation ...