Yes, they can be eligible for subsidized COBRA coverage. Thus, individuals who had an involuntary termination of employment or reduction in hours within the last 18 months and did not timely elect COBRA must be given the ability to elect subsidized COBRA coverage for the months between April and September 2021 during which they would have been eligible for COBRA.
A qualified beneficiary whose qualifying event was a reduction in hours or an involuntary termination of employment prior to April 1, 2021 and who did not elect COBRA continuation coverage when it was first offered prior to that date, or who elected COBRA continuation coverage but is no longer enrolled (for example, an individual who dropped COBRA continuation coverage because he or she was unable to continue paying the premium) may have an additional election opportunity at this time.
Individuals eligible for this additional COBRA election period must receive a notice of extended COBRA election period informing them of this opportunity. This notice must be provided within 60 days of the first day of the first month beginning after the date of the enactment of the ARP (so, by May 31, 2021) and individuals have 60 days after the notice is provided to elect COBRA. However, this additional election period does not extend the period of COBRA continuation coverage beyond the original maximum period (generally 18 months from the employee's reduction in hours or involuntary termination).
Additionally, individuals who subsequently become eligible for COBRA coverage between April and September 2021 will be able to elect subsidized COBRA coverage during the months they are eligible