When did ARPA COBRA subsidy end?
Asked by: Prof. Friedrich Wiza DVM | Last update: October 1, 2025Score: 4.8/5 (47 votes)
When did the COBRA subsidy end?
Q. When does the COBRA subsidy provided in the American Rescue Plan end? A. The COBRA subsidy will be available through September 30, 2021.
When did ARPA expire?
With the December 31, 2024 deadline for obligating American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds (SLFRF) quickly approaching, counties nationwide are assessing how best to allocate these critical resources.
What is the COBRA ARPA subsidy?
Overview of COBRA and the Subsidy Program
In 2021, the federal government introduced the COBRA subsidy program under the American Rescue Plan Act (ARPA). The subsidy covered 100% of the COBRA premium costs for assistance eligible individuals (AEI) from April 1, 2021, through September 30, 2021.
Is the end of the COBRA subsidy a qualifying event?
However, you won't qualify if you decide to end COBRA early and are paying the full benefit cost yourself. You also don't qualify if you lose your COBRA coverage because you didn't pay your premiums. Remember, you don't need a special enrollment period if you voluntarily end COBRA during open enrollment.
American Rescue Plan Act (ARPA) - COBRA Subsidy
What is the COBRA loophole?
If you decide to enroll in COBRA health insurance, your coverage will be retroactive, meaning it will apply to any medical bills incurred during the 60-day decision period. This loophole can save you money by avoiding premium payments unless you actually need care during this time.
What does COBRA subsidy mean?
The COBRA subsidy is available for individuals who are or become qualified beneficiaries as a result of involuntary termination of employment or a reduction in hours. This may include individuals who: become eligible for COBRA during the subsidy period.
What are ARPA subsidies?
Temporary subsidies were originally passed as part of the American Rescue Plan Act (ARPA) in 2021, which included two years of enhanced subsidies (2021 and 2022). The Inflation Reduction Act (IRA), which passed in 2022, extended these enhanced subsidies for an additional three years, ending after 2025.
How do I claim my COBRA subsidy credit?
Request a Refund for Amounts Paid in COBRA Premiums Exceeding Federal Employment Tax Liability: The employer may claim the Credit through an employment tax refund on the applicable employment tax return, generally Form 941, Employer's Quarterly Federal Tax Return.
How does ARPA funding work?
State governments and the District of Columbia will receive $195.3 billion of the state portion of the recovery funds over two tranche disbursements. Territories will receive a total of $4.5 billion in a single payment. Recipients must obligate the funds by Dec. 31, 2024, and spend them by Dec.
How long will ARPA last?
While the December 31, 2024, deadline requires funds to be obligated, spending can continue through December 31, 2026. This means you can align obligations with long-term priorities, such as workforce development, infrastructure and affordable housing—as long as the obligations are finalized by December 31, 2024.
What are the ARPA funds for December 2024?
California has received over $43 billion in combined recovery funds from the American Rescue Plan Act of 2021 to cover costs incurred between March 3, 2021 and December 31, 2024, to mitigate the impacts of the COVID-19 Pandemic, including $27 billion in state fiscal recovery funds.
What is the COBRA subsidy for 2009?
The American Recovery and Reinvestment Act of 2009 (ARRA) provided COBRA premium subsidies of 65% to help unemployed workers afford to continue enrollment in health coverage offered by their former employer.
When COBRA ends?
How Long Does COBRA Last? COBRA coverage lasts 18 or 36 months, depending upon the qualifying event. If eligibility was triggered by job loss or reduced hours, COBRA coverage can last up to 18 months from the date of the event.
When did they stop making the COBRA?
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What happens when COBRA subsidy ends?
You can continue on COBRA unsubsidized until your 18 months of COBRA eligibility ends. In addition, you will have the option to enroll in marketplace coverage when the subsidy ends in September. Loss of the COBRA subsidy will make you eligible for a special enrollment period (SEP) to sign up for marketplace coverage.
Is a COBRA subsidy taxable?
No you do not have to report the COBRA assistance as income. Under Sec. 139I, the premium assistance is excluded from an individual's gross income because the employer or other payer can receive a tax credit for providing the coverage.
Can I get a refund from COBRA?
Generally, there are no refunds when you cancel your plan early. You may contact your administrator or your past employer for specific insurance payment information.
What is ARPA Cobra?
The American Rescue Plan Act of 2021 (ARPA) includes a federally-financed COBRA subsidy that is available for up to six months for eligible individuals. ARPA was signed into law on March 11, 2021. The law provides for COBRA health insurance premium assistance for individuals who meet certain requirements.
Will ACA subsidies expire in 2025?
First enacted in 2021 under the American Rescue Plan Act, the enhanced subsidies were renewed through the end of 2025 by the Inflation Reduction Act. Since their implementation, ACA Marketplace enrollment has grown each year and hit record highs, reaching over 21 million in 2024.
Who is eligible for the $1,400 subsidy card?
$1,400 for each child dependent under the age of 17. $1,400 for each qualifying adult dependent. If you're a single filer, your payment is reduced if your adjusted gross income (AGI) is above $75,000. For married couples filing jointly, the phase-out begins at an AGI of $150,000.
Can you claim COBRA on your taxes?
Are my COBRA premiums deductible? Yes they are tax deductible as a medical expense. There isn't necessarily a “COBRA Tax Deduction”. You can only deduct the amount of COBRA medical expenses on your federal income tax in excess of 7.5% of your Adjusted Gross Income and then only if you itemize deductions.
What is the average COBRA payment?
Average Cost of COBRA Insurance in 2025
COBRA is a continuation of your most recent employer group health plan. According to Value Penguin, the average cost of individual health insurance in the United States is $537/month in 2025. However, costs vary significantly by state.
Who is not eligible for COBRA?
Why would an employee not qualify to enroll in Cal-COBRA? The employee is enrolled in or eligible for Medicare. The employee does not enroll within 60 days of receiving the notice of eligibility from the employer. The employee is covered by another health plan.