The Consolidated Omnibus Budget
Reconciliation Act of 1985 (COBRA) provides that under certain
circumstances participants and beneficiaries of group health plans
that satisfy the definition of “qualified beneficiaries” under
COBRA may elect to continue group health coverage temporarily
following events known as “qualifying events” that would otherwise
result in loss of coverage. COBRA provides that the Secretary of
Labor (the Secretary) has the authority under section 608 of the
Employee Retirement Income Security Act of 1974 (ERISA) to carry
out the provisions of Part 6 of Title I of ERISA. The Conference
Report that accompanied COBRA authorized the Secretary to issue
regulations implementing the notice and disclosure requirements of
COBRA. President Biden signed the American Rescue Plan Act (ARPA)
on March 12, 2021. Section 9501 of ARPA provides for premium
assistance and expanded eligibility for health benefits under the
Consolidated Omnibus Budget Reconciliation Act of 1986, commonly
called COBRA. This premium assistance is not paid directly to the
covered employee or the qualified beneficiary, but instead is in
the form of a tax credit for the health plan, the employer, or the
insurer. An individual must be an "assistance eligible individual"
to be eligible for the premium assistance. If eligible, these
individuals receive a subsidy of their COBRA premiums equal to the
full amount of the premium. The subsidy is paid through a tax
credit to the employer. Eligible individuals can start getting the
premium assistance as of the first day of coverage beginning on or
after April 1, 2021. To be eligible to receive premium reduction an
individual must: (1) Be eligible for, and elect, COBRA continuation
coverage, (2) have experienced an involuntary termination of
employment which led to the COBRA election opportunity, (3) have
experienced the involuntary termination during the extension of
election period, and ending September 30, 2021.
If the Department were
to comply with standard PRA clearance procedures, individuals will
not likely know about the subsidy and other rights under the
statue.
James Butikofer 202 693-8434
Butikofer.James@dol.gov
No
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.