COBRA Subsidies Included in American Rescue Plan Act Signed by Biden
In any monster piece of legislation like the American Rescue Plan Act you'll have all kinds of provisions that could impact an employer or employee. In THIS ARTICLE you will get some quick detail on two provisions that employers need to know about:
1) Cobra Subsidies - allows workers who have been involuntarily terminated terminated or experienced a reduction in hours to continue their employer health insurance coverage under COBRA with a 100 percent subsidy. The subsidy is effective April 1, 2021 and continues through September 30, 2021. The federal government will reimburse the employer or insurer (for fully insured plans) for the cost of the subsidy, including COBRA administrative fees.
2) Dependent care FSA limit - temporary increase, for 2021, in the maximum amount that can be contributed to a dependent care flexible spending account from $5,000 to $10,500.