COBRA COVID-19 Updates
Impacts on COBRA
March 12, 2021
American Rescue Plan Act
On Thursday, March 11, 2021, the President signed the American Rescue Plan Act (the 'Act') which includes continuation coverage premium assistance for certain individuals and their families receiving COBRA due to an involuntary termination of employment or a reduction of hours. The Act also includes a temporary change to Dependent Care Flexible Spending Accounts (DCFSAs).
Our teams are currently reviewing the guidance to determine the impacts to both our clients and members. Based on this review, the team will determine next steps, so our clients and members have a solid course of action.
Please check back for more details as they become available. We are committed to keeping you informed as the situation evolves.
Thank you for your patience.
Covid-19 | Member Resource
COBRA Update
The Consolidated Omnibus Budget Reconciliation Act (COBRA) mandates that certain employers provide opportunities to elect continuation of health insurance coverage to qualified beneficiaries who would otherwise lose coverage due to certain qualifying events.
If you are currently enrolled in COBRA coverage administered by HealthEquity, your coverage will continue as long as premiums are paid and you remain eligible. Visit HealthEquity.com/stay-covered for more information on maintaining your coverage during the COVID-19 outbreak period.
HealthEquity is working closely with our employer clients to ensure continuity of benefits administration during this challenging time.
What does this mean for you?
Employees (or former employees) must generally pay the full amount of the insurance premiums and, if applicable, an administrative fee of up to 2% of the premium in order to continue coverage under COBRA.
Qualifying events can include:
- •Voluntary and involuntary job loss
- •Reduction in work hours
- •Death of the employee
- •Loss of dependent status
- •Divorce or legal separation of employee and their spouse
- •Employee becomes entitled to Medicare
- •Notifications
- •Billing
The recent guidance from the Department of Labor extends certain timeframes and deadlines during the Outbreak Period, giving affected individuals additional time to make elections and payments.
Frequently Asked Questions
There have been a lot of changes during this past month as the nation deals with COVID-19. This list will hopefully help you find the answers you need regarding your health benefits.
Don't see your question? Contact us