American Rescue Plan Act of 2021 state continuation subsidy information

The American Rescue Plan Act (ARPA) of 2021 provides temporary premium assistance for some state continuation coverage for fully insured 1–19 employer groups. Premium assistance is available for the period beginning April 1, 2021, or prospectively from the date of the qualifying event if the qualifying event is after April 1, 2021, through Sept. 30, 2021, or the end of the qualified beneficiary's eligibility period, whichever is earlier. The premium assistance may end earlier if the assistance eligible individual (AEI) becomes eligible for another group health plan or Medicare. The premium assistance is available to certain AEIs who are eligible for fully insured state continuation coverage.

To be eligible for the premium assistance, a qualified beneficiary must meet all the following requirements: 

  • Must have a qualifying event that is a reduction in hours or an involuntary termination of a covered employee's employment.
  • Must elect state continuation coverage with effective dates between April 1, 2021, and Sept. 30, 2021, or were enrolled in state continuation coverage as of March 31, 2021, and are still eligible April 1, 2021. 
  • Must not be eligible for Medicare. 
  • Must not be eligible for coverage under any other group health plan, such as a plan sponsored by a new employer or a spouse's employer.

For fully insured state continuation, the insurer, not the employer, is responsible for advancing the premium for AEIs and taking a tax credit.

Employers who have employees that are or may be covered under state continuation coverage provided by UnitedHealthcare between April 1, 2021, and Sept. 30, 2021, read this notice closely and take appropriate actions. Also provided is this Employer Verification Form.

For more information, please contact your broker or UnitedHealthcare representative.

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