COBRA Premium Relief Under ARPA
Among other components, the American Rescue Plan Act (ARPA) of 2021 provides temporary premium assistance for COBRA continuation coverage. Assistance is available to specific individuals eligible for COBRA continuation coverage due to a qualifying event that is a reduction in hours or an involuntary termination of employment. As a reminder, defined COBRA coverage deadlines have been extended through 60 days past the end of the national emergency period associated with the COVID-19 pandemic.
Individuals who qualify for premium assistance do not need to pay any of the COBRA premium otherwise due to the plan. Assistance is available from April 1, 2021 through September 30, 2021 or the end of the qualified beneficiary’s 18-month COBRA eligibility period, whichever is earlier.
Individuals receiving COBRA coverage beyond that date will be responsible for their own premiums or may qualify for a special enrollment period in the Health Insurance Marketplace.
Outreach by UMR and Action Needed by Cooperatives
Beginning the week of May 3, 2021, benefits administrators at co-ops who have elected COBRA administration through UMR will receive emails containing a list of qualified beneficiaries who have been sent COBRA election notices for qualifying events of reduction in hours or termination of employment occurring on or after October 1, 2019.
Benefits administrators will need to review and provide confirmation of whether the termination of employment events were involuntary or voluntary and provide address updates, if applicable. UMR will use this information to notify assistance-eligible individuals who will need to be notified of the premium assistance. Once verified by each co-op, UMR will send required notices and additional communication to impacted individuals.
Questions?
If your co-op has elected COBRA administration through UMR, please contact your UMR COBRA administrator for assistance.
If you self-administer COBRA, please reach out to your local field representative for assistance.