On April 7, the U.S. Department of Labor (DOL) released the much-anticipated Model Notice for Assistance Eligible Individuals (AEIs). After reviewing the notice and additional guidance released alongside it, TASC can now offer more information specific to how the American Rescue Plan Act (ARPA) impacts your COBRA/State Continuation plan and how we can help you comply with the provisions.
Please be aware any processes described or outlined below are subject to change pending further direction from official sources.
How TASC Can Help
As your COBRA/State Continuation administrator, TASC has you covered. Our Governmental Affairs team, compliance analysts and legal counsel have thoroughly reviewed the ARPA provisions to determine the impact on our clients. With a legislative change of this magnitude, the list of considerations and processes affected is extensive.
We’re taking the administrative burden off of you and making it simple and straightforward for you to comply and minimize risk. Many of the notifications and communication required will be with participants, as the beneficiaries of the subsidy. When action is required on your part, we will let you know promptly.
To assist you with some common issues, we have collected a list of FAQs on our website.
For specific process information, please read below.
Administrative Changes
We are preparing our systems and notices, including the new Notice of Expiration of Premium Assistance.
We are developing an Employer Subsidy Application Report (ESAR) so clients can perform the necessary payroll adjustment to recoup subsidized premiums, as well as implementing a process to collect the 2% COBRA administration fee from clients.
- Since TASC will not be collecting premiums from AEIs, you will need to monitor activity and pay premiums to the applicable carrier(s). The subsidies are funded via a payroll tax credit, which you can claim to recoup these premium payments (including 2% administrative fee charged by TASC). You should consult with your payroll and tax advisors for further direction.
For clients new to TASC since October 2019, we will be in contact with you to obtain information for participants who would not be in our systems (e.g., if the qualifying event predates the service agreement start date) as some may be AEIs under ARPA.
Process Timeline
Before May 31, TASC will send the required ARPA notices and Request for Treatment as an Assistance Eligible Individual forms to participants with a qualifying event (QE) of either 1) reduction in hours or 2) involuntary termination.
Please note, for a termination QE to confer AEI status, it must have been involuntary. While TASC cannot make this determination, we will supply participants with information from the DOL defining an AEI (see FAQ, “Who qualifies?”). They will then need to determine based on those criteria if they would qualify for assistance, make their coverage selection and return all forms to TASC. This process may change pending further guidance from the DOL.
As we receive premium assistance attestations from participants requesting treatment as AEIs, we will automatically apply the subsidy in our systems and notify the primary COBRA/State Continuation plan contact on file.
- If you agree that the participant is an AEI, no action is necessary.
- If you disagree with the determination, you must inform TASC within five business days. TASC will remove the subsidy and communicate with the participant, who has opportunity to dispute this with the DOL.
In the event an AEI paid for subsidized months of coverage, TASC will coordinate refunds with those participants directly. Under no circumstances should you issue refunds to participants.
TASC will communicate with participants confirming the subsidy has been processed, and they can enjoy the subsidy through their end date. TASC will send the Notice of Expiration of Premium Assistance prior to a participant’s COBRA/State Continuation coverage end date.
Tools & Other Materials
For more general information about the COBRA provisions in ARPA, the DOL has released their own FAQs.
Watch for more communication & updates to the FAQs as we continue to receive clarification from official sources. For questions about how the American Rescue Plan Act will impact your COBRA/State Continuation plan, please call TASC Customer Care at 800-422-4661.
When prompted, press “2” and enter your 12-digit TASC ID#.
Thank you for choosing TASC as your COBRA/State Continuation administrator. We appreciate the opportunity to serve you.
You can rely on TASC to stay abreast of all legislative changes and keep you informed as to how they may affect your benefits and compliance management. Subscribe to our blog for important updates as they happen.
