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American Rescue Plan Act of 2021

Published:  June 2, 2021

On May 18th the IRS released additional guidance related to the new COBRA premium subsidies that were established under the American Rescue Plan Act of 2021 (ARPA).

Under ARPA employers must provide temporary 100% premium subsidies to eligible individuals who elect to continue coverage under COBRA from April 1, 2021 to September 31, 2021.

The guidance addresses a number of issues that have arisen with respect to the new COBRA premium subsidies. This includes clarifications about what types of coverage are covered by the subsidies, what terminations are considered voluntary versus involuntary, and what constitutes a reduction in hours. The guidance also provides more details on how to calculate and claim the COBRA Premium Assistance Credit.

For any questions on how this latest guidance may affect you, please contact any of the attorneys at Royal Law Firm.

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