MESSA subsidy for continuation of coverage – temporarily suspended
The American Rescue Plan Act of 2021 provides full COBRA premium assistance for eligible individuals from April 1, 2021 through September 30, 2021. During this time, employers will be responsible for these COBRA premiums. And, employers will recover the cost of the coverage by claiming a credit against their quarterly Medicare payroll tax liability.
Because the federal government is subsidizing this program and reimbursing employers for the cost of COBRA premiums from April 1, 2021 through September 30, 2021, MESSA is suspending our own COBRA subsidy for continuation of coverage due to layoff during this same time period.
Members already approved for the MESSA subsidy for continuation of coverage will continue to receive this benefit for the length of their approval.
Administering the ARPA COBRA subsidy
Additional guidance regarding administering the ARPA COBRA subsidy for your employees is expected soon from the Department of Labor. To date, model forms have not been made available. As soon as model language is available, MESSA will share this information with our employer groups.
If your group has signed up for MESSA’s COBRA services, MESSA will send the premium assistance election and ending notices for you.
If you have any questions, contact MESSA Group Services at 888.888.4167.