DOL publishes guidance on COBRA premium assistance under ARP

The American Rescue Plan (ARP) includes premium assistance for people who continue their health insurance coverage via COBRA. The Department of Labor (DOL) recently published guidance on the COBRA premium subsidy. 

Not official use.

Who's eligible? People who qualify for COBRA due to a reduction in hours or an involuntary termination (unless the termination was for "gross misconduct"). But, the subsidy excludes people who are "eligible for other group coverage, such as through a new employer's plan or a spouse's plan . . . or if [they] are eligible for Medicare." 

The premium assistance generally runs from April 1, 2021 to September 30, 2021. The employer or plan is "entitled to a tax credit for the amount of the premium assistance." The guidance also includes some Model Notices, which is helpful. Check out the full guidance for additional information and answers to more questions.