The Act provides COBRA premiums for “assistance eligible individuals” to be subsidized by the federal government through payroll tax credits for a period of six months, beginning on April 1, 2021 and ending on September 30, 2021.
What is the subsidy amount? 100% of the cost of premiums during the “Period of Coverage” timeframe of April 1, 2021 and when the subsidy is set to expire on September 30, 2021, subject to otherwise applicable maximum periods of coverage (typically 18 months) under COBRA.
Who is eligible for the COBRA premium subsidy? Any “assistance eligible individual” who loses coverage due to an involuntary termination of employment or because of an involuntary reduction of hours, and who would otherwise be eligible during timeframe between April 1, 2021 and September 30, 2021.
Individuals who lose coverage during Period of Coverage due to an involuntary termination of employment or because of a reduction of hours