COBRA subsidy under the American Rescue Plan Act of 2021
Updated On: May 20, 2021
Eligibility for the COBRA Subsidy ....
The COBRA subsidy is available to any person who loses (or has already lost) their health coverage due to an involuntary termination of employment (for example, layoff) or reduction in hours. Any such individual will be eligible for the subsidy if any of the following apply:
The individual becomes eligible for COBRA coverage during the Subsidy Period;
The individual is currently enrolled for COBRA coverage; or
The individual became eligible for COBRA coverage prior to April 1, 2021, and the period of COBRA coverage to which the individual would be entitled under federal law (18 months) overlaps with the Subsidy Period — even if the individual did not elect COBRA when it was initially offered or elected COBRA but discontinued it before April 1, 2021