08 April 2021

GOVT. ISSUES NEW COBRA RELIEF RULES

The recent American Rescue Plan Act has issued a short term relief plan for people going onto Cobra effective April 1st and extending till September 30th. If any employees loses coverage due to being involuntarily terminated or has their hours reduced to less than full time, they will not be required to pay the Cobra premiums during this six months of relief. If the company is not Cobra eligible then the employee will be eligible for State Continuation  which is the States version of Cobra with the same financial relief. If the employee’s Cobra continues past 9/30/2021 then they will resume making their Cobra payments. At the end of their Cobra the employee will have an opportunity to pick up new coverage through the Market Place often called Obamacare. Please call us if you have any questions.