Posts tagged COBRA.

On March 11, 2021, President Biden signed into law the American Rescue Plan Act (“ARPA”).  The ARPA mandated several important changes for both employers and employees.  One of these is potentially significant for both: full subsidies for employer-paid COBRA premiums.  The ARPA requires employers to provide temporary, fully subsidized COBRA continuation coverage premiums for certain individuals for up to six months.  Employers will be able to recover the subsidized premiums by claiming a tax credit.

The benefits provided to employers and employees are available to COBRA ...

The Consolidated Omnibus Budget Reconciliation Act (“COBRA”) became law on April 7, 1986.  For most of its nearly 35-year history, litigation involving COBRA has been relatively quiet.  Most COBRA claims are tag-alongs, added as an afterthought to various sorts of discrimination claims, and a few cases involving the definition of “gross misconduct” (essentially the one narrow exception where an offer of COBRA coverage is not required).

In the wake of the pandemic, this is changing.  Recently, there have been a number of cases filed (most filed as class actions) involving ...

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