As communicated earlier this month, WebTPA has been working to identify the individuals affected by the COBRA tolling period extensions. By the end of this week, our goal is to provide our clients with a copy of the COBRA Election Extension Period Notice and the COBRA Election Extension Period Expiration Notice. Once you have had the opportunity to review the notices, we will begin mailing the notices to the identified individuals.
We are awaiting the publication of the ARPA Subsidy Availability/Election and ARPA Subsidy Expiration model notices from the Department of Labor (DOL). The DOL must provide these in April 2021 and we will share them as soon as they are available.
Assistance Eligible Individuals who receive subsidy notices will include qualified beneficiaries who lost their health coverage as far back as November 2019, since the 18-month maximum coverage period for a qualified individual on that date does not expire until the end of April 2021. As a reminder, the Assistance Eligible Individuals must have experienced an involuntary termination or a reduction in hours.
The Federal government will reimburse the employer through a refundable credit against FICA taxes and we will be able to track the subsidy activity necessary for employers to file for the tax credit through our COBRA platform.