ARPA Termination Notices due by Sept. 15!

September 14, 2021

Related PeopleRyan A. Haas

Practice AreasEmployment

The American Rescue Plan Act (ARPA) provided for 100% premium assistance to employees who became eligible for continued health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) due to a reduction in their hours or involuntary termination of their employment between Nov. 1, 2019 and April 1, 2019. The ARPA subsidy period runs from April 1, 2021 to Sept. 30, 2021, and has not been extended. Under the ARPA, employers and plan administrators must provide termination notices to assistance eligible employees no more than 45 days and no less than 15 days before the subsidy ends. With the ARPA subsidy ending on Sept. 30, employers must send the termination notice no later than Sept. 15.

The U.S. Department of Labor prepared a model termination notice. Employers and plan administrators are encouraged to use the model notice because the Department of Labor considers its use to be in good faith compliance with the ARPA’s notice requirements. If an employer or plan administrator uses its own form, it must include statements that (1) the COBRA subsidy is ending and prominent identification of the date the subsidy will end; and (2) information explaining that the individual may be still be eligible for continued health insurance coverage just without a COBRA subsidy through COBRA or from another group health plan, including through the Health Insurance Marketplace. The model notice provides detail on the special enrollment period for employees losing their ARPA subsidy and explains that they will have 60 days from Sept. 30 to select a Marketplace plan through

Should you have questions concerning obligations to provide the ARPA subsidy termination notice, contact one of Chuhak & Tecson’s Employment attorneys.

For more information contact Ryan Haas (312 855 4614), principal and general counsel.

This Chuhak & Tecson, P.C. communication is intended only to provide information regarding developments in the law and information of general interest. It is not intended to constitute advice regarding legal problems and should not be relied upon as such.