President Biden signed H.R. 1319, the American Rescue Plan Act of 2021 (ARP), on March 11, 2021. This law subsidizes the full COBRA premium for “Assistance Eligible Individuals” for periods of coverage from April 1, 2021 through September 30, 2021. The subsidy applies to medical, dental and vision coverage.
This information is for those covered under the Railroad Employees National Health and Welfare Plan, The National Dental Plan and the National Vision Plan.
Railroad Enrollment Services will send notices to impacted members under the above referenced Plans by May 31, 2021.
To be eligible for the premium assistance, individuals:
MUST have a COBRA qualifying event that is a reduction in hours or an involuntary termination of a covered employee’s employment;
MUST elect COBRA continuation coverage;
MUST NOT be eligible for Medicare; AND
MUST NOT be eligible for coverage under any other group health plan, such as a plan sponsored by a new employer or a spouse’s employer.
The Department of Labor developed a list of Frequently Asked Questions (FAQs) concerning eligibility for the COBRA Premium Assistance outlined in the ARP.
Click here to read the full release from TCU.
Click here to read the Q&A from the DOL