As part of the American Rescue Plan Act of 2021 (ARPA),聽employers are聽required to provide, a subsidy to employees and their qualified beneficiaries to pay聽100% of the COBRA continuation premium聽for group health plan coverage.聽This subsidy applies only to 鈥渁ssistance eligible individuals,鈥 who are聽eligible for COBRA as a result of an involuntary termination of employment or a reduction in hours聽and who are, or could have been, eligible for COBRA聽during the period of April 1, 2021 through September 30, 2021聽(the 鈥淪ubsidy Period鈥).聽聽聽An聽employer or plan to whom COBRA premiums are payable is entitled to a tax credit for the聽amount of the premium assistance.
