Employers with 20 or more employees that have a group health plan must under federal law offer continuation coverage to employees and certain other individuals upon the happening of a triggering event (e.g., leaving the job); there may be state-level COBRA obligations for smaller employers. Typically, the covered person pays the premiums plus an administration fee. Under the American Rescue Plan Act, coverage from April 1, 2021, through September 30, 2021, for anyone involuntarily terminated from a job (other than for gross misconduct) or who had a reduction in hours is eligible for free coverage (and a refund of premiums paid during this period). The DOL has guidance on how this special COBRA rule operates. Employers must provide notices to employees about this; they can use model notices. #IdeaoftheDay
Important: The deadline for applying for a PPP loan runs through May 31, 2021.
