COBRA Subsidies in the COVID Stimulus Package

The new Federal COVID Stimulus Package includes COBRA subsidies that will be available between April 1st and September 30th of 2021 for specifically eligible persons. Tokio Marine HCC – Stop Loss Group (TMHCC) is aware of the requirements that our policyholders are undertaking regarding COBRA elections. TMHCC will continue to accommodate policyholders that are following federal requirements.

Highlights:

• Involuntarily terminated or furloughed individuals who lost Plan coverage are eligible.

• The 60-day deadline for eligible employees to accept COBRA remains.

• The appropriations are intended to soften the impact of previous or current premiums owed.

• 100% subsidy of the COBRA premium for eligible individuals may apply.

Ultimately, this is another opportunity to elect COBRA for individuals with a qualifying event in the last 18 months who missed or dropped their COBRA coverage. Once the COBRA notification letter has been received by an individual who did not previously elect COBRA, or dropped it later, they will have 60 days to declare their intent. The COBRA subsidy lasts six months initially, then the individual can continue in the program, but without this direct subsidy.

TMHCC is dedicated to empowering and supporting our partners as these COBRA subsidies manifest and will continue to work closely with you and your clients as we navigate this unprecedented event. For more information about the COVID stimulus package, or more specifically the COBRA subsidies, please contact your regional marketing representative. As is typical with legislation of this size and importance, there may be some nuances and particular points of interest that may apply to your constituents.

Sources:

• SIIA, Federal COBRA Subsidies in the COVID Stimulus Package, March 2021
• Groom Law Group, New COBRA Subsidies – American Rescue Plan Act, April 2021