The American Rescue Plan Act (ARPA) of 2021 was signed into law on March 11, 2021. ARPA provides temporary premium assistance for COBRA continuation coverage. The premium assistance is available for the period beginning April 1, 2021 (or prospectively from the date of the qualifying event if the qualifying event is after April 1, 2021) through September 30, 2021 or the end of the qualified beneficiary’s 18-month COBRA eligibility period, whichever is earlier. The premium assistance may end earlier if the assistance eligible individual becomes eligible for another group health plan or Medicare. The premium assistance is available to certain assistance eligible individuals who are eligible for COBRA continuation coverage due to a qualifying event that is a reduction in hours or an involuntary termination of employment. To be eligible for the premium assistance, a qualified beneficiary must meet the following requirements:

MUST have a COBRA qualifying event that is a reduction in hours or an involuntary termination of a covered employee’s employment;

   

MUST elect COBRA continuation coverage;

   

MUST NOT be eligible for Medicare; AND

   

MUST NOT be eligible for coverage under any other group health plan, such as a plan sponsored by a new employer or a spouse’s employer.

Qualified beneficiaries who would be an assistance eligible individual if they had elected COBRA, but do not have an election in effect or who previously elected COBRA and subsequently dropped their COBRA coverage must be provided another 60-day election period in which to elect COBRA. Coverage for assistance eligible individuals who elect coverage during the extended election period will begin on April 1, 2021. If the assistance eligible individual is still eligible to make an election under their original offer of COBRA, they have the option of electing retroactively to their qualifying event and paying all premium due for periods prior to April 1, 2021.

Assistance Eligible Individuals with a COBRA election in place shall be treated for purposes of any COBRA continuation provision as having paid in full the amount of the premium for the period for which they are eligible for the premium assistance.

The Department of Labor (DOL) has issued model notices related to ARPA and regulations regarding the provision of these notices.

A summary of subsidies: Must be sent with the COBRA Continuation Coverage Notice in Connection with Extended Election Periods and ARP General Notice and COBRA Continuation Coverage Election Notice and the Alternative Notice.

   

A model notice in connection with the extended election period: Notice for any Assistance Eligible Individual (or any individual who would be an Assistance Eligible Individual if a COBRA continuation coverage election were in effect) who became entitled to elect COBRA continuation coverage before April 1, 2021. This notice must be provided by May 31, 2021.

   

A model alternative notice: Notice for all qualified beneficiaries who have experienced any qualifying event at any time from April 1, 2021 through September 30, 2021 under state law.

   

A model general notice and election notice: Notice for all qualified beneficiaries who have experienced any COBRA qualifying event at any time from April 1, 2021 through September 30, 2021.

   

A model notice of expiration of subsidies: This notice must be provided 15 to 45 days before the date of expiration of premium assistance. This notice is not required to be provided if eligibility for the premium assistance ends because the individual has become eligible for another group health plan or if the individual has become eligible for Medicare.

   

Qualified beneficiaries who believe they are eligible for the premium assistance will need to submit the Request for Treatment as an Assistance Eligible Individual form which is included in the notices. If the qualified beneficiary does not have an election in effect, they will also have to submit the COBRA Election Form.

 

Services that UHC COBRA Administration will provide

   

Mailing of the COBRA Continuation Coverage Notice in Connection with Extended Election Periods (at no charge to the group)

   

Review of Requests for Treatment as an Assistance Eligible Individual

   

Request verification from employer of involuntary termination or reduction in hours for qualified beneficiaries who request premium assistance and were sent their COBRA Election Notice after the initial list of qualified beneficiaries is generated (Please see below regarding this list)

   

When applicable, mailing of denial letter to qualified beneficiaries who request Treatment as an Assistance Eligible Individual who are not eligible)

   

System updates for individuals who qualify as Assistance Eligible Individuals

   

Communication of eligibility changes to enrollment and outside carriers due to qualified beneficiaries qualifying as Assistance Eligible Individuals

   

Mailing of the Notice of Expiration of Period of Premium Assistance

   

Call center assistance for qualified beneficiaries who have questions regarding the premium assistance

   

Individuals who have met the requirements to be Treated as Assistance Eligible Individuals and who paid in full for periods of continuation coverage beginning on or after April 1, 2021 through September 30, 2021 will be issued a refund within 60 days of determination of Assistance Eligible status

 

Customer Responsibilities

   

Log onto https://www.uhcservices.com to create a report of all qualifying event activity for your population Please review the list and provide confirmation of whether the termination of employment event was involuntary or if an event was a reduction in hours. Please provide address updates, if applicable. As your COBRA Administrator, we will need this information in order to identify the qualified beneficiaries who must be notified of the availability of the premium assistance.

 

   

Log onto uhcservices.com

   

Under Billing Services select Reports

   

Select On-Demand

   

Select the report “Participant Extract” from the Report drop-down options

   

Use the date range of September 1, 2019 – present date to capture all notices which have been processed in that timeframe.

   

 

If qualifying events were processed well in advance of September 1, 2019 for a November 1, 2019 start date or later, the date range can be set to an earlier date than September 1, 2019.

 

   

Include Enrolled, Include Terminated, Include Notified, Exclude Dependents and Include Dropped/Terminated Coverages

   

Generate Export

   

Review anyone whose Coverage Effective date is October 1, 2019 onward.

   

Determine if any listed should be an Involuntary Termination qualification. Our system recognizes the following codes as involuntary making them assistance eligible.

 

   

AR (Involuntary Termination)

RH (Reduction in Hours)

LO (Lay Off)

   

 

Provide verification upon request from COBRA Administrator of involuntary termination for qualified beneficiaries who request premium assistance and were sent their COBRA Election Notice after the initial list of qualified beneficiaries is identified.

   

 

For COBRA, employers will be responsible for applying for the tax credit to be reimbursed for the amount of the premium assistance. We anticipate that the Treasury will issue guidance regarding this process. We will provide more information regarding the tax credits when the guidance is issued.

   

 

For State Continuation, UnitedHealthcare will be responsible for applying for the tax credit to be reimbursed for the amount of the premium assistance in the case of fully insured groups.

   

If you have any questions, please contact us per below for assistance.

Sincerely,

UnitedHealthcare Benefit Services
800.318.5311
cobra@uhcservices.com