COBRA Continuation Coverage: Premium Assistance

Forms and Documents

Document	Type	Status	Availability
1210-0NEW- SS_COBRA Premium Assistance 4.6.21.docx	Supporting Statement A	Uploaded 2021-04-06	Available
COBRA Emergency Clearance Memo to OMB 3-1-2021.docx	Supplementary Document	Uploaded 2021-04-06	Available

IC Document Collections

IC ID	Collection	Type	Status	Form
246194	COBRA Notices	Other-Alternative COBRA subsidy notice	New

ICR Details

OMB Control No: 1210-0167	ICR Reference No: 202103-1210-002
Status: Active	Previous ICR Reference No:
Agency/Subagency: DOL/EBSA	Agency Tracking No:
Title: COBRA Continuation Coverage: Premium Assistance
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 04/06/2021
OIRA Conclusion Action: Approved with change	Conclusion Date: 04/06/2021
	Date Received in OIRA: 04/06/2021
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	10/31/2021	6 Months From Approved
Responses	41,455,446	0	0
Time Burden (Hours)	548,983	0	0
Cost Burden (Dollars)	30,599,590	0	0

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Abstract: 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.

Emergency Justfication: 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.

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

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

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
COBRA Notices

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ICR Summary of Burden

	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

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: This is a new collection of information.

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Yes

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Common Form ICR:  No

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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:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(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;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

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.

Certification Date: 04/06/2021

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