COBRA Continuation Coverage: Premium Assistance

ICR 202103-1210-002

OMB: 1210-0167

Federal Form Document

Forms and Documents
Supporting Statement A
Supplementary Document
IC Document Collections
246194 New
ICR Details
1210-0167 202103-1210-002
COBRA Continuation Coverage: Premium Assistance
New collection (Request for a new OMB Control Number)   No
Emergency 04/06/2021
Approved with change 04/06/2021
Retrieve Notice of Action (NOA) 04/06/2021
  Inventory as of this Action Requested Previously Approved
10/31/2021 6 Months From Approved
41,455,446 0 0
548,983 0 0
30,599,590 0 0

The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) provides that under certain circumstances participants and beneficiaries of group health plans that satisfy the definition of “qualified beneficiaries” under COBRA may elect to continue group health coverage temporarily following events known as “qualifying events” that would otherwise result in loss of coverage. COBRA provides that the Secretary of Labor (the Secretary) has the authority under section 608 of the Employee Retirement Income Security Act of 1974 (ERISA) to carry out the provisions of Part 6 of Title I of ERISA. The Conference Report that accompanied COBRA authorized the Secretary to issue regulations implementing the notice and disclosure requirements of COBRA. President Biden signed the American Rescue Plan Act (ARPA) on March 12, 2021. Section 9501 of ARPA provides for premium assistance and expanded eligibility for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1986, commonly called COBRA. This premium assistance is not paid directly to the covered employee or the qualified beneficiary, but instead is in the form of a tax credit for the health plan, the employer, or the insurer. An individual must be an "assistance eligible individual" to be eligible for the premium assistance. If eligible, these individuals receive a subsidy of their COBRA premiums equal to the full amount of the premium. The subsidy is paid through a tax credit to the employer. Eligible individuals can start getting the premium assistance as of the first day of coverage beginning on or after April 1, 2021. To be eligible to receive premium reduction an individual must: (1) Be eligible for, and elect, COBRA continuation coverage, (2) have experienced an involuntary termination of employment which led to the COBRA election opportunity, (3) have experienced the involuntary termination during the extension of election period, and ending September 30, 2021.
If the Department were to comply with standard PRA clearance procedures, individuals will not likely know about the subsidy and other rights under the statue.

PL: Pub.L. 117 - 2 9501(a)(5) Name of Law: American Rescue Plan Act of 2021
PL: Pub.L. 117 - 2 9501(a)(5) Name of Law: American Rescue Plan Act of 2021

Not associated with rulemaking


IC Title Form No. Form Name
COBRA Notices

  Total Approved Previously Approved Change Due to New Statute Change Due to Agency Discretion Change Due to Adjustment in Estimate Change Due to Potential Violation of the PRA
Annual Number of Responses 41,455,446 0 41,455,446 0 0 0
Annual Time Burden (Hours) 548,983 0 548,983 0 0 0
Annual Cost Burden (Dollars) 30,599,590 0 30,599,590 0 0 0
This is a new collection of information.

James Butikofer 202 693-8434 [email protected]


On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
    (i) Why the information is being collected;
    (ii) Use of information;
    (iii) Burden estimate;
    (iv) Nature of response (voluntary, required for a benefit, or mandatory);
    (v) Nature and extent of confidentiality; and
    (vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

© 2021 | Privacy Policy