DOL Releases ARPA COBRA Subsidy Model Notices, Formal Guidance, and FAQs

April 7th, 2021

Today the U.S. Department of Labor’s Employee Benefits Security Administration (“EBSA”) released its guidance on the ARPA COBRA subsidy, including the issuance of downloadable model notices.  Links to that guidance and the model notices are provided in the body of this e-mail, below.  Among the FAQs are the following notes, which answer two of the most frequent questions we have received regarding the subsidy:

1. EBSA confirms that the subsidy is applicable to all employers subject to federal COBRA obligations and also those employers subject to state “mini-COBRA” laws.

2. The ARPA COBRA subsidy applies to “all group health plans … subject to … COBRA.”  This would include, for example, dental and vision insurance benefits, to the extent those programs are health insurance and not fixed indemnity or discount card programs.

Here is the content of the EBSA Notice and Links:

COBRA Premium Assistance under the American Rescue Plan Act of 2021

• COBRA Premium Subsidy dedicated page, available at https://www.dol.gov/COBRA-subsidy
• FAQs, available at https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/faqs/cobra-premium-assistance-under-arp.pdf
• Model Notices:
  • General Notice and Election Notice, available at https://www.dol.gov/sites/dolgov/files/ebsa/laws-and-regulations/laws/cobra/premium-subsidy/model-general-and-election-notice.pdf
  • Notice in Connection with Extended Election Period, available at https://www.dol.gov/sites/dolgov/files/ebsa/laws-and-regulations/laws/cobra/premium-subsidy/model-extended-election-periods-notice.pdf
  • Alternative Notice, available at https://www.dol.gov/sites/dolgov/files/ebsa/laws-and-regulations/laws/cobra/premium-subsidy/model-alternative-election-notice.pdf
  • Notice of Expiration of Premium Assistance, available at https://www.dol.gov/sites/dolgov/files/ebsa/laws-and-regulations/laws/cobra/premium-subsidy/notice-of-premium-assistance-expiration-premium.pdf

Summary of the COBRA Premium Assistance Provisions, available at https://www.dol.gov/sites/dolgov/files/ebsa/laws-and-regulations/laws/cobra/premium-subsidy/summary-of-provisions.pdf