The 3 C's Explained: COVID-19, COBRA, and CA Paid Sick Leave

The United States Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) enables qualified beneficiaries who lose health benefits due to a qualifying event to continue group health benefits. While some group health plans may provide COBRA continuation coverage at a reduced rate or at no cost, most qualified beneficiaries pay the full COBRA premium. The American Rescue Plan Act of 2021 (ARPA) provides for a 100% COBRA premium subsidy for individuals who were involuntarily terminated or whose hours were reduced and who enroll in COBRA coverage from April 1, 2021 to September 30th of 2021.

In local news, on March 19, 2021, the Governor of California signed SB 95, bringing back the state’s COVID-19 Supplemental Paid Sick Leave. Covered employees in the public or private sectors who work for employers with more than 25 employees are entitled to up to 80 hours of COVID-19 related sick leave, retroactively from January 1, 2021 to September 30, 2021.

While these new regulations may be confusing, we’re here with Treaver Hodson and Bob Bentley to help explain these changes and what they mean for you.