Scopelitis, Garvin, Light, Hanson & Feary, P.C.


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Law Alert: COBRA Subsidy Requirement is Here

by Steven A. Pletcher

April 8, 2021

On March 26, 2021, the Firm provided a “heads-up” with respect to the new COBRA Premium Subsidy Program contained in the American Rescue Plan Act (ARPA). As we discussed, the COBRA Premium Subsidy Program allows for a 100% subsidy of COBRA premiums for Assistance Eligible Individuals (AEI) that are qualified COBRA beneficiaries due to involuntary termination from employment or reduction in hours. Employers will be responsible for paying the AEI’s COBRA premium during the Covered Period and can then claim a credit against payroll tax for the amounts paid. We indicated that the Department of Labor was to issue Model Notices of the type required under the ARPA. Those Model Notices (and FAQs concerning the Subsidy) have now been issued and can be accessed at the following links:

For more information on the ARPA COBRA Premium Subsidy Program, please contact Scopelitis Partner Steve Pletcher.


News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.