FAQ Category: Subsidy Administration

There are potential penalties for employers and individuals who are not in compliance with the COBRA subsidy rules. For Employers or Plan Sponsors: Employers who

Yes. Until an individual is notified that they are eligible for a COBRA subsidy, active COBRA participants should pay premiums. Active COBRA participants who have

Plan sponsors are responsible for paying premiums to the carrier and will receive a tax credit against their quarterly payroll taxes. The specific process to

If the individual intended to have continuous coverage, they would be responsible for any premiums incurred prior to April 1, 2021. If an individual intends

AEIs will have 60 days from notification to elect coverage under the subsidy. Coverage can be reinstated retroactively to April 1, 2021. AEIs who are

All Assistance Eligible Individuals (AEIs) will have a second election period in which they can elect coverage under the subsidy even if they did not

AEIs must be notified no later than May 31, 2021 of their right to coverage and will have 60 days to elect coverage.

Model General Notice and COBRA Continuation Coverage Election Notice For use by group health plans for qualified beneficiaries who have qualifying events occurring from April