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Barbara Weltman

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Guidance on Free COBRA

April 28, 2021 / By Barbara Weltman

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.

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Small business ideas, business tax news and small business consulting from Barbara Weltman to provide business owners with the information they need to succeed. Visit our small business blog, Idea of The Day®, small business books and articles on small business taxes, small business finance and small business legal advice.

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