One provision under the new America Rescue Plan Act (ARPA) is 6 months of free (federally subsidized) continued health insurance coverage beginning this month. This significant benefit is for individuals who “had a COVID qualifying event that is a reduction in hours or an involuntary termination.” This is provided through what is known as the COBRA program (“Consolidated Omnibus Budget Reconciliation Act” to help eligible employees and their beneficiaries.
ARPA makes 100% premium assistance available during the period April 1, 2021 through September 30, 2021.
Access to these free COBRA benefits is limited to “Assistance Eligible Individuals” (AEI) who meet certain requirements. An AEI is defined as someone who experienced an involuntary termination of employment (not caused by gross misconduct) or had a voluntary or involuntary reduction in hours worked and either refused or elected COBRA continuation health insurance coverage before April 1, 2021.