COBRA Alert: Enhanced Benefits for Some Former Employees

Employers who attempted to reduce expenses by laying off employees should pay attention to this alert. You may be required to cover 100% of Consolidated Omnibus Budget Reconciliation Act (COBRA) premiums from April 1, 2021, through September 30, 2021, for some of your former employees. Last month President Biden signed into law the American Rescue Plan Act (ARPA), which provides essential health insurance benefits to specific eligible individuals. This brief alert explains who is eligible and what former employees who are eligible need to do.