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The American Rescue Plan Act of 2021 – TeamstersCare Update
April 13, 2021 Update
The American Rescue Plan Act of 2021 (ARPA) will allow some of our members to qualify for a 100% COBRA subsidy for coverage beginning on April 1st, 2021, or later. TeamstersCare has identified members who may qualify as Assistance Eligible Individuals (AEIs) and a notification of the extended election period has been mailed to them.
Potential AEIs are members whose TeamstersCare benefits ended on October 31, 2019 or later due to a reduction in work hours or involuntary loss of employment. Those who are enrolled in Medicare or other group health coverage (including the TeamstersCare Early Retiree Medical Program) are not eligible for the subsidy.
If you think you may qualify as an AEI, please complete and return the Request for Treatment as an Assistance included in the Summary of the COBRA Premium Assistance Provisions under the ARPA of 2021. You may access this document by clicking HERE.
Please click HERE for FAQs about COBRA Premium Assistance under the American Rescue Plan Act of 2021.
March 23, 2021 Update
As you have likely heard, the American Rescue Plan Act of 2021 (ARPA or the Act) brings big changes to COBRA in the near future. While TeamstersCare awaits further guidance from the regulatory agencies on how our members can apply, we wanted to bring you the latest information in the following FAQs…
Who is eligible for the COBRA subsidy?
“Assistance Eligible Individuals”, or AEIs, qualify for the subsidy. An AEI is someone who is eligible for COBRA coverage in the time period between April 1 and September 30, 2021, because of a reduction of employment hours or an involuntary termination (other than for gross misconduct).
Those who terminated employment voluntarily are not eligible, nor are those who received an offer of COBRA for other qualifying events (ex: death or dependent aging out of coverage).
How much will COBRA cost?
AEIs will receive a 100% COBRA subsidy. TeamstersCare will cover the COBRA cost.
If I didn’t elect COBRA when I lost coverage, can I apply?
Yes, qualified beneficiaries who previously did not elect COBRA are eligible to apply. If approved, coverage will be retroactive to April 1, 2021.
How long will COBRA last if I elect it during the extended election period?
A person electing COBRA through the extended election period may maintain the coverage only until the expiration of the COBRA coverage period that they were originally entitled to (typically 18 months from the date that Active coverage ended).
How long do I have to apply?
TeamstersCare is awaiting regulations from the Departments of Treasury, Labor and Health & Human Services. As soon guidance is released, we will notify eligible applicants of next steps. AEIs will have at least 60 days from the date of notification to elect COBRA coverage.
What is TeamstersCare doing?
TeamstersCare is currently reviewing our data to create a list of those who MAY be eligible to apply for the COBRA subsidy. Once the Departments release the required notices, we will be mailing potential AEIs with information and Application Forms to complete and return for review.
What should I do now?
Please continue to check our website for the latest information. We assure you that TeamstersCare will provide updates as soon as they are available.