We are the United Steelworkers, North America’s largest industrial union. We’re 1.2 million members and retirees strong in the United States, Canada and the Caribbean. We proudly represent men and women who work in nearly every industry there is.
Set out below are Frequently Asked Questions (FAQs) regarding implementation of certain provisions of the American Rescue Plan Act of 2021 (ARP), as it applies to the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly called COBRA. These FAQs have been prepared by the Department of Labor (DOL). Like previously issued FAQs (available at https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/faqs), these FAQs answer questions from stakeholders to help individuals understand the law and benefit from it, as intended. The Department of the Treasury and the Internal Revenue Service (IRS) have reviewed these FAQs, and, concur in the application of the laws under their jurisdiction as set forth in these FAQs.
COBRA Continuation Coverage
COBRA continuation coverage provides certain group health plan continuation coverage rights for participants and beneficiaries covered by a group health plan. In general, under COBRA, an individual who was covered by a group health plan on the day before the occurrence of a qualifying event (such as a termination of employment or a reduction in hours that causes loss of coverage under the plan) may be able to elect COBRA continuation coverage upon that qualifying event.1 Individuals with such a right are referred to as qualified beneficiaries. Under COBRA, group health plans must provide covered employees and their families with certain notices explaining their COBRA rights.
ARP COBRA Premium Assistance
Section 9501 of the ARP provides for COBRA premium assistance to help Assistance Eligible Individuals (as defined below in Q3) continue their health benefits. The premium assistance is also available for continuation coverage under certain State laws. Assistance Eligible Individuals are not required to pay their COBRA continuation coverage premiums. The premium assistance applies to periods of health coverage on or after April 1, 2021 through September 30, 2021. An employer or plan to whom COBRA premiums are payable is entitled to a tax credit for the amount of the premium assistance.
For more information on COBRA continuation coverage requirements applicable to private-sector employment- based group health plans, see “An Employer’s Guide to Group Health Continuation Coverage Under COBRA,” available at ...
We are the United Steelworkers, North America’s largest industrial union. We’re 1.2 million members and retirees strong in the United States, Canada and the Caribbean. We proudly represent men and women who work in nearly every industry there is. Our members are leaders in your communities, in your work places, in our governments and more. We have a presence in the United Kingdom, Ireland, England, Scotland, Mexico and many other places around the world.
We believe in better. We stand up and fight back for better. We work for working families around the world.
