Dear Fortiphi Insurance clients and friends- we wanted to take a few minutes to acknowledge the most recent American Rescue Plan Act (ARPA) that was signed into law on March 11, 2021. The ARPA is a $1.9 trillion economic stimulus bill passed by the 117th United States’ Congress and signed into law by the President to speed up the United States’ recovery from the economic and health effects of the COVID-19 pandemic. While there are many important items within this law, we specifically wanted to share one of them that will have a direct impact on current Federal and State COBRA laws and administration.
ARPA allows Federal and State COBRA qualified beneficiaries (QB) to have 100% subsidized COBRA coverage from 04/01/2021 to 09/30/2021. The 100% subsidy is fully covered by the Federal Government.
Multiple scenarios will exist on premium reimbursements depending on where coverage is being purchased (ie: direct to the carrier or via an Association Health Plan). For groups with a COBRA contract with Fortiphi, you will continue to pay the invoices “as-billed” but instead of receiving a reimbursement from Fortiphi each month, the reimbursements for QB’s will come directly from your applicable insurance company. Self-funded employers will claim reimbursements for QB’s through a special payroll tax credit- further instructions from the State forthcoming.
For groups with a COBRA contract with Fortiphi, we are targeting the week of April 5 to distribute the COBRA notices to QB’s. At this point we
are awaiting special safe harbor language form the Department of Labor before we can issue. Once the QB receive the new paperwork, they have 90 days to elect.