Archived Insight | September 8, 2021

Reminder: Notice of COBRA Subsidy Termination Is Due Soon

On September 30, 2021, the six-month federally financed COBRA subsidy covering the full COBRA premium for eligible individuals that was included in the American Rescue Plan Act of 2021 will expire. By September 15, sponsors of group health plans must send a notice of the expiration of premium assistance to all participants who are receiving the COBRA subsidy.

What information must be in the notice?

The notice must include this information:

The date of the expiration of the subsidy
That the individual may be eligible for coverage without any premium assistance through COBRA continuation coverage or coverage under a group health plan
Availability of coverage through the federal health insurance Marketplace
Possible availability of coverage through Medicaid

The federal government published a model for this notice.

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This page is for informational purposes only and does not constitute legal, tax or investment advice. You are encouraged to discuss the issues raised here with your legal, tax and other advisors before determining how the issues apply to your specific situations.