Welfare Fund
of Local No. One, I.A.T.S.E.

NEW FEDERAL COBRA SUBSIDY
 
The following notice is intended to be a very brief, general summary to alert you about the new government COBRA subsidy. While the Fund recognizes that your eligibility for this subsidy may impact your decision to elect COBRA coverage, please be aware that there are many detailed rules and unanswered questions at this point in time, and the government is expected to issue guidance in the coming weeks that will fill in the gaps. Accordingly, it may not be possible for a determination to be made at this time as to whether you or your family members will be eligible for the subsidy or exactly how the subsidy will work. The Fund will be providing additional information, including information about how you can receive the subsidy, once further guidance is issued by the government.
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As a result of a new law enacted on March 11, 2021 – called the American Rescue Plan Act of 2021 (ARPA) – the Federal government will be providing a temporary 100% COBRA premium subsidy beginning with the month of April 2021.
 
The subsidy will be available to eligible employees (and their family members who are COBRA qualified beneficiaries) who lost health coverage under the Local One Welfare Fund due to the employee’s involuntary termination or reduction in hours of employment.  
 
The subsidy will be available for any such eligible employee (and their family members) who either:
• is enrolled in COBRA or will become eligible for COBRA because they will lose coverage beginning on July 1, 2021, or
• lost coverage beginning in July 2020, is not currently enrolled in COBRA (either because the individual did not elect COBRA or elected it and discontinued it prior to April 1, 2021) and would still be within the 18-month COBRA period had the person elected or not discontinued COBRA coverage.
 
The ARPA subsidy is available beginning with the month of April 2021 and ends September 2021 (or earlier, if the individual’s original maximum COBRA period expires earlier or the individual is otherwise no longer eligible for COBRA coverage).
 
The subsidy is not available if the individual is eligible (or becomes eligible) for Medicare or group health coverage (excluding certain types of limited coverage), even if the individual does not actually enroll in Medicare or other group coverage. Enrollment in Marketplace coverage should not affect eligibility for the subsidy.
 
Individuals who are eligible for the subsidy but did not elect COBRA (or elected it and let coverage lapse) will be offered a second COBRA election period, allowing them to elect COBRA coverage on a prospective basis beginning with the month of April 2021.
 
Again, please note that it may not be possible for a determination to be made at this time as to whether you or your family members will be eligible for the subsidy or exactly how the subsidy will work. The Fund will be providing additional information, including information about how you can receive the subsidy, once further guidance is issued by the government. 
 

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