WASHINGTON - The U.S. Department of Labor's
Employee Benefits Security Administration (EBSA), in conjunction with the
Internal Revenue Service, announced a further extension of a number of
deadlines so workers and employers affected by Hurricane Katrina have
additional time to make critical health coverage decisions.
The relief provides additional time to comply with
certain deadlines, contained in the Consolidated Omnibus Budget Reconciliation
Act (COBRA), the Health Insurance Portability and Accountability Act (HIPAA)
and the rules for processing of health claims, that can have a profound impact
on workers' health benefits.
Without the extension, people might miss key
events in the immediate aftermath of the storm which could result in loss of
eligibility for continuation of health benefits or cancellation for missed
premium payments under COBRA. Workers could also become subject to preexisting
condition exclusions preventing them from being covered for their current
medical conditions by a new insurer, or they could lose the ability to join
their spouse's health plan. For more information concerning the extended
deadlines, see the attached Fact Sheet.
The Labor Department and IRS will continue to
monitor the situation to address those issues that are most important in
helping individuals, employers and plan sponsors recover from this tragedy. The
notice of extension will appear in the Federal Register Oct. 12. For more
information on Hurricane Katrina relief, contact the department at
1-866-4USA-DOL or EBSA at 1-866-444-3272. |