Page 8 - CANNABIS NEWS FLORIDA JUNE 2021

Florida’s Resource for
Medical & Business
Cannabis Developments

PO Box 812708
Boca Raton, FL 33481-2708
ARPA & Cobra Subsidy Phone: (561) 368-6950

Website:
On March 11, 2021, President Biden signed Medicare taxes will be treated as a refund of a www.cannabisnewsflorida.com
the American Rescue Plan Act of 2021 (ARPA) Medicare tax overpayment. CHARLES FELIX
in an effort to address employment issues Additionally, ARPA imposes three key notice CAROL FELIX
caused by the COVID-19 pandemic. Among requirements on employers with compliance dead- Publishers
other provisions, ARPA created a COBRA pre- line. First, before May 31, 2021, employers were
mium subsidy along with additional COBRA required to notify those who became eligible for pre- NANCY LAMMIE
enrollment rights for certain employees who mium assistance before April 1, 2021, that they may JMC Graphics
lost group health plan coverage due to an be entitled to premium-assisted COBRA coverage. Art/Production
involuntary termination of employment or a This same information needs to be provided to all
reduction of hours. individuals that become eligible for COBRA during JUDY GRAMM
From April 1, 2021 through September 30, the six-month subsidy period.Employers will also be Editorial Manager

2021, group health plans providing COBRA responsible for notifying "second chance" individu- CONTRIBUTING WRITERS
continuation coverage (or continuation cov- BY SUMMER als of their option to re-elect COBRA coverage by Daniel Casciato • Barbara Fallon
erage under state “mini-COBRA” laws) must WESTERBUR May 31, 2021. Finally, employers will be responsible Vanessa Orr • Lois Thomson
offer a 100 percent subsidy of COBRA premi- for notifying AEIs when the COBRA premium assis-
ums for assistance-eligible individuals and their dependents. tance period is ending. These notices must be sent to AEIs at SUBSCRIPTIONS
The premium amount is paid by the employer or plan and least 15 days – but not more than 45 days – prior to the expi- One Year - $45
will be reimbursed by the federal government through a ration of premium-assistance COBRA coverage. Two Years - $70
refundable credit against payroll taxes. For self-insured plans Three Years - $85
and insured plans subject to federal COBRA, the employer will For more information, please contact Summer Westerbur at
receive the tax credit. For insured plans not subject to COBRA, summer@kairosinsurancegroup.com To subscribe, call (561) 368-6950
Or email: carol@cannabisnewsflorida.com
the insurer will receive the credit. Credit amounts exceeding or call (719) 331-1832.

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