State Continuation Under the American Rescue Plan Act

The American Rescue Plan Act (ARP) provides for full premium subsidy for COBRA and for State continuation of coverage programs for periods of coverage between April 1, 2021 and September 30, 2021 for Assistance Eligible Individuals.

"Assistance Eligible Individuals" generally are individuals who are/were:

  • eligible for COBRA continuation coverage due to involuntary termination or reduction in hours occurring between April 1, 2021 and September 30, 2021
  • previously offered COBRA continuation coverage due to involuntary termination or reduction in hours, declined, and are still in their continuation period
  • dropped or lost COBRA coverage prior to April 1, 2021

"COBRA continuation coverage" includes COBRA continuation coverage under ERISA for groups with 20 or more employees, continuation of coverage provisions for group health plans sponsored by state or local government employers, and State continuation of coverage. Virginia State Continuation applies to fully insured Small Groups (fewer than 20 employees or otherwise not eligible for COBRA).

Note: Employers will need to inform their sales representative if they qualify for State continuation coverage and which employees qualify for the subsidy.

See Frequently Asked Questions

Please contact your Optima Health representative if you have any questions.