COBRA Premium Subsidies: FAQ, Model Notices

The American Rescue Plan Act signed into law March 11, 2021 included a substantial and temporary government subsidy equal to 100% of COBRA premiums for eligible individuals from April through September 2021.

Assistance eligible individuals generally include those who were eligible for COBRA as a result of an involuntary termination of employment or a reduction in hours resulting in a loss of coverage, and who elected COBRA during the subsidy period.

Individuals who voluntarily terminate employment are not eligible for the subsidy.

The COBRA subsidy under ARPA will continue for assistance eligible individuals during the subsidy period, except in cases in which coverage terminates due to the assistance eligible individual becoming eligible for other health plan coverage, or the COBRA period (or maximum COBRA period) comes to an end.

Frequently Asked Questions

• COBRA Premium Assistance under the American Rescue Plan Act of 2021 FAQs
• General COBRA FAQs for Employers

Model Notices

• Model General Notice and COBRA Continuation Coverage Election Notice: MS Word | PDF. Also available in Spanish MS Word | PDF
• Model Notice in Connection with Extended Election Period: MS Word | PDF. Also available in Spanish MS Word | PDF
• Model Alternative Notice: MS Word | PDF. Also available in Spanish MS Word | PDF
• Model Notice of Expiration of Premium Assistance: MS Word | PDF. Also available in Spanish MS Word | PDF
• Summary of COBRA Premium Assistance Provisions under the American Rescue Plan Act of 2021: MS Word | PDF. Also available in Spanish MS Word | PDF
• Federal Register Notice