On March 11, 2021, the American Rescue Plan Act of 2021 (ARP) became law in the United States. Provisions of this law state that employers are now required to pay a 100% subsidy of the Consolidated Omnibus Budget Reconciliation Act (COBRA) continuation coverage premiums for certain people during the period of April 1, 2021, through […]
Tag: COBRA premiums
Most employers are aware that the Consolidated Omnibus Budget Reconciliation Act (COBRA) requires group health plans sponsored by covered employers to allow qualified beneficiaries to have “COBRA continuation coverage” in the event that they lose group health plan coverage for specified reasons.
A third-party administrator that poorly communicated a COBRA premium rate increase — which in any case was likely prohibited under COBRA’s rules — is being sued for ERISA benefits denial and state-law promissory estoppel claims. The TPA instituted the premium change but did not provide clear written notice of it as required under plan terms. […]