By Alan RaussMelissa Yasinow

The American Rescue Plan, which was signed into law on March 11, 2021, contains significant changes to COBRA. The biggest change is that employers must now provide assistance-eligible individuals with a 100% subsidy for COBRA premiums from April 1, 2021 to Sept. 30, 2021. The law also includes second chance coverage to assistance-eligible individuals who did not elect, or who elected and then dropped, their COBRA coverage. Assistance-eligible individuals include all people who are eligible for continuation coverage under COBRA because of an involuntary termination or an involuntary reduction in hours. This means that employers must subsidize the COBRA coverage of employees whose involuntary terminations had nothing to do with the COVID-19 pandemic. The subsidies are not available to those who were voluntarily terminated… Read more.