American Rescue Plan Act of 2021 (ARPA) – New Provisions for COBRA and DepCare Flexible Spending Accounts

March 16, 2021

On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 (ARPA), the latest federal COVID-19 relief bill.  The law includes significant impacts to health and welfare benefits related to employer subsidies for COBRA continuation coverage and an annual maximum contribution increase for DepCare FSA.

The UCOP Health & Welfare Benefits team is currently evaluating the ARPA to determine how it will affect our COBRA and DepCare Flexible Spending Account program operations. They are working with UCPath and WEX on how to implement mandated requirements. 

Please note that at this time, UCPath is not configured to accept DepCare annual contributions greater than $5,000. More information will be available soon about how the ARPA provisions will be implemented for UC.