Advance Notice Required Before COBRA Subsidy Ends
August 25, 2021
By: John C. Godsoe Robert W. Patterson
Group health plan sponsors that are providing the temporary COBRA premium subsidy required by the American Rescue Plan Act (ARPA) must provide advance notice to certain recipients that the COBRA subsidy will end. The notice must be provided at least 15 days, and not more than 45 days, before the earlier of Sept. 30, 2021 or the date on which the recipient will reach the end of his or her maximum COBRA coverage period. No notice is required in the case of a recipient whose COBRA coverage and subsidy are ending due to Medicare eligibility or eligibility under another group health plan.
The U.S. Department of Labor (DOL) previously published a model notice for this purpose. The six-page model notice can be accessed here.
For those subsidy recipients whose maximum COBRA coverage period will end after Sept. 30, 2021, the notice must be provided by Sept. 15, 2021. An earlier notice deadline will apply in the case of recipients whose maximum COBRA continuation coverage period will end before Sept. 30, 2021.
If you have any questions about the COBRA subsidy or the related notice requirements, you can find our prior articles here. You may also contact John Godsoe, Robert Patterson, any attorney in our Employee Benefits and Executive Compensation practice or the attorney at the firm with whom you are regularly in contact.
