If you have group health clients, you’re probably receiving calls from them asking about the new COBRA subsidy created by the American Rescue Plan Act. President Biden’s $1.9 trillion COVID relief bill provides a 100% subsidy for up to six months of the COBRA or state continuation premiums for eligible employees, former employees, and their covered family members. While that’s certainly a good thing for those who qualify, it’s creating headaches for employers and plan administrators. In this post, we’ll try to get you started and help answer some of the most important questions about the subsidy. There’s still some confusion about how this will work, so we won’t be getting too “in the weeds.”
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