Laid-Off Employees Get Aid to Keep Job-Related Health Coverage

April 7, 2021, 7:32 PM

People who lose their employer-sponsored health insurance due to a layoff or reduction in hours may be able to get back that coverage for free, according to Labor Department guidance released Wednesday.

The guidance carries out provisions of the American Rescue Plan that offer premium subsidies to employees who are eligible to continue their coverage under the Consolidated Omnibus Budget Reconciliation Act. Continuing coverage under COBRA is expensive, and many people choose not to do it when they lose their jobs.

Employer groups and health insurers pushed for the COBRA subsidies, arguing they would allow people who became unemployed during ...

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