The American Rescue Plan Act (ARPA) of 2021 was signed into law by President Biden on March 11, 2021. ARPA introduces a COBRA subsidy period from April 1, 2021, to September 30, 2021, which provides full COBRA premium payments for eligible individuals.
For Medical Mutual groups, COBRA Options is allowing groups to flag members that will be eligible for the subsidy. Once groups have flagged their subsidy-eligible members and the Department of Labor model notice has been released, letters will be mailed to those members. For MHS groups, the MHS COBRA vendor TRAVISOFT is updating its system to allow the MHS COBRA team to run reports of individuals who are eligible for the subsidy to supply to groups for confirmation.
COBRA Options and the MHS COBRA team will continue to collect the standard 2 percent administrative fee from groups. Tax credits should be taken for the full premium amount (including the administrative fee). Members should keep paying their COBRA premium as scheduled and will receive a refund or premium credit.
Medical Mutual does not administer State Continuation.
Contact your Cornerstone representative with any questions.