This is a reminder that a COBRA notice deadline is approaching. It applies to employers that are subject to the federal COBRA rules.
The American Rescue Plan Act (ARPA) requires employers that are subject to the federal COBRA rules to provide notice to those who do not currently have COBRA continuation coverage, but who are eligible to elect that coverage with a subsidy under the ARPA. The deadline for providing that notice is Monday, May 31, 2021.
Monday is Memorial Day, and often deadlines of this nature are extended to the next business day, although there has been no formal announcement of an extension at this time.
If you are subject to federal COBRA, you should confirm that you or your COBRA administrator has met or is meeting this deadline. The Department of Labor has published model forms that may be used to meet the requirement, but employers need to identify those who are eligible to receive it.
Eligible individuals include those who:
- Became entitled to COBRA because of a reduction of hours or involuntary termination of employment, and
- As of April 1, 2021, were still within the period when COBRA would have applied to them, but
- Never elected COBRA or who discontinued their COBRA coverage.
Although most employers have already taken action to meet these requirements, the COBRA subsidy rules are detailed and can be confusing. Please let us know if we can help.