American Rescue Plan Offers Free COBRA Coverage, But it’s Very Complicated

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When President Joe Biden signed the American Rescue Plan Act of 2021 (ARPA), one of the effects was to make COBRA continuation coverage free for certain qualifying individuals and their families from April 1 to September 30, 2021. The free coverage is available to those who lose group health plan coverage because either (1) they were terminated (not including resignations) or (2) their hours were reduced. So, all you have to do is remember the two reasons and the new coverage until September 30, right? No, it’s not that easy.

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