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3 Employer Takeaways from the Latest Virus Relief Push, Law360

Friday, March 19, 2021

Morgan Lewis partner Jonathan Zimmerman spoke with Law360 about the new COBRA subsidies introduced by the American Rescue Plan Act (ARPA). The passage of ARPA means that eligible employees who were laid off or had a reduction in hours as a result of COVID-19 can stay on their workplaces health plans for free within the extended 18 months of coverage from COBRA. Jonathan notes that this legislation “applies retroactively” so it is available to eligible employees from Nov. 1, 2019. He said that this means “under this new statute where people who declined COBRA coverage over the course of the past year can make a new election now to opt into COBRA and get the subsidized coverage between April and September.”

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