OCA's ARPA Operational Update (Week of April 19th)

OCA remains committed to being at the forefront of ARPA. To that end, we are hearing that the IRS will be issuing additional guidance on ARPA this week. We are extremely hopeful that many of the remaining open questions will be answered and the industry as a whole can begin to work towards administering ARPA correctly. Until then, OCA wanted to provide a clear illustration of the new ARPA notices, who will be receiving them, expected timelines, and how OCA will be assisting our clients. 
 
Overview of Required ARPA Notices

ARPA requires the new notices be sent to assistance eligible individuals (AEIs) by May 31, 2021, so we are still well within the timeframe to remain compliant. 

COBRA Election Notice (Updated COBRA Notice)

Expected Completion Date: 5/1/21

The COBRA Election Notice is sent to new Qualified Beneficiaries (QB) and describes their rights to continuation coverage and how to make an election. OCA will be updating its COBRA Election Notice (for both Federal and State Continuation) to include the required ARPA language and include the "Request for Treatment as an Assistance Eligible Individual" form. See additional information on this form under the additional FAQs below.

Extended Election Period Notice (New COBRA Notice)

Expected Completion Date: 5/15/21

The Extended Election Period Notice is a new COBRA notice under ARPA. Unless future guidance says otherwise, OCA will be sending this notice with the subsidy request form (see link above) to potential AEIs who were involuntarily terminated or had a reduction in hours and who were identified as one the following:
  • AEI and/or their Dependent QBs who are currently on Federal COBRA (or applicable State Continuation) or;
  • AEI and/or their Dependent QBs who either did not previously elect Federal COBRA or elected but let their coverage lapse. These individuals must be offered an additional window to prospectively elect Federal COBRA coverage effective April 1, 2021. We refer to this as the "2nd bite at the apple." Remember, this does not apply to State Continuation groups.  
     
Expiration of Premium Assistance Notice (New COBRA Notice)

Expected Completion Date: Determined on case-by-case basis

The Expiration of Premium Assistance Notice is a new COBRA notice under ARPA. Unless future guidance says otherwise, OCA will be sending this notice to AEIs 15-45 days before their subsidy expires. This notice explains to the AEI that their subsidy is about to end and provides them with the new COBRA rates (if applicable), alternative plan options (i.e. Individual Coverage), etc. 

Additional ARPA Notice FAQs

Will employers/brokers receive a copy of the ARPA notice sent to each AEI?

Yes. Copies of  these notices will all be available with 24/7 access on OCA's secure employer/broker portal. OCA will be mailing these notices to AEIs via USPS with proof of mail. 

How long will AEIs have to complete the "Request for Treatment as an AEI?"

AEIs will have 60 days from the date the ARPA notice was issued to attest that they are eligible for the subsidy. AEIs will be instructed to complete the form and remit it back to OCA. OCA will then advise the necessary parties of the subsidy.

What are the penalties for the employer if they do not comply with these notices?

Employers could face fines up to $110 for each day, for each person, and for each occurrence. 

We thank you for your continued patience and support as we navigate together through the American Rescue Plan Act (ARPA). For more FAQs and ARPA resources, please visit OCA's ARPA subsidy page.