The ARPA includes a 100% COBRA premium subsidy for eligible individuals and their family members. Details about the subsidy and criteria are included below.
- The subsidy will cover 100% of the COBRA premiums for employees and family members who are losing group health coverage as a result of an involuntary termination of employment or reduction in work hours.
- The subsidy will begin on April 1, 2021 and end on September 30, 2021.
- Any eligible individual who is enrolled in COBRA or will enroll in COBRA on or after April 1, 2021, and before September 30, 2021, will have the subsidy available to them.
- The subsidy is not available for individuals who voluntarily end employment or become eligible for group health plan coverage elsewhere.
- Employers will receive a credit for the COBRA subsidy through a payroll tax credit against their quarterly taxes.