--- title: New COBRA Subsidy Provisions description: The American Rescue Plan Act will provide a 100% subsidy of premiums for employer-sponsored group health insurance continued under COBRA. image: https://blog.nisbenefits.com/hubfs/blog-headers/cobra%20B-2.jpg --- ![New COBRA Subsidy Provisions](https://blog.nisbenefits.com/hubfs/blog-headers/cobra%20B-2.jpg) # New COBRA Subsidy Provisions - Home - [Employee Benefit News for School, City and County Employers](https://blog.nisbenefits.com) - New COBRA Subsidy Provisions [ Rick Labian ](https://blog.nisbenefits.com/author/rick-labian) 03/25/2021 [ Legislative News](https://blog.nisbenefits.com/topic/aca-other-legislative-news), [ COVID-19](https://blog.nisbenefits.com/topic/covid-19) [0 Comments ](https://blog.nisbenefits.com/new-cobra-subsidy-provisions#postComment) 1 Minutes *1.5 minute read* Part of the [American Rescue Plan Act (ARPA)](https://blog.nisbenefits.com/american-rescue-plan-signed-into-law) provides a 100% subsidy of premiums for employer-sponsored group health insurance under COBRA. COBRA requires group health plans to allow covered employees and their dependents continue their health plan coverage for a period of time when it is lost due to specific events. The subsidy is generally available to those who elected COBRA, become eligible for COBRA, or declined or discontinued COBRA and are still within their original COBRA coverage period. The ARPA subsidies will cover the full cost of COBRA from April 1 – September 30, 2021. The subsidies are funded through a payroll tax credit. Employers will be required to provide new notices about the subsidy to employees. The Department of Labor will be issuing a model general notice in April. The ARPA also allows individuals to switch to similarly priced health coverage if their employer allows it. The new coverage can’t have a higher premium then their previous coverage and it must be offered to similarly situated active employees. The change must be elected within 90 days of receiving notice of this option. [Download the bulletin](https://blog.nisbenefits.com/hubfs/Blog%20-%20supporting%20documents/bulletin-cobra-subsidy-provisions-ar%5Ba.pdf) for more details. * [![Anoka-Hennepin School District Case Study](https://no-cache.hubspot.com/cta/default/3325505/8b976330-049c-4968-b0d0-27c99793732b.png)](https://cta-redirect.hubspot.com/cta/redirect/3325505/8b976330-049c-4968-b0d0-27c99793732b)* *This blog is intended to be a compilation of information and resources pulled from federal, state, and local agencies. This is not intended to be legal advice. 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