The American Rescue Plan (ARP) temporarily reduces premiums for which coverage?

The American Rescue Plan (ARP) temporarily reduces premiums for COBRA continuation health coverage. This legislation was enacted to provide financial relief and assistance during the COVID-19 pandemic, specifically targeting the healthcare needs of individuals who have lost their jobs. COBRA allows employees and their dependents to continue their health coverage after employment ends, but the cost of premiums can be a significant burden.

Under the ARP, a temporary subsidy is provided that covers 100% of the premiums for eligible individuals who elect COBRA continuation coverage. This means that individuals can maintain their health insurance without the financial strain of paying COBRA premiums for a limited time. This support is crucial for those who have been affected by job loss, helping to ensure they have access to necessary healthcare services during a challenging period.

In contrast, the other options—short-term disability insurance for maternity leave, short-term disability insurance for self-employed individuals, and universal life insurance—are not directly related to the health coverage subsidies provided under the ARP. Thus, the focus of the plan is specifically on COBRA coverage to aid individuals in maintaining their health benefits.