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Archived News Release Caution: Information may be out of date. Archived News Release Caution: Information may be out of date.
For more information call: (202) 219-8921
Today the U.S. Department of Labor issued a request for
information (RFI) seeking public comment on whether a regulation is needed to
clarify the disclosure requirements of the federal law under which employees
and their beneficiaries can continue their group health coverage.
The federal right to have continued access to
employer-provided group health coverage is commonly called "COBRA continuation
coverage" after the legislation of which it was a part, the Consolidated
Omnibus Budget Reconciliation Act of 1985 (COBRA). COBRA applies to any group
health plan maintained by an employer with 20 or more employees.
The COBRA continuation coverage provisions generally
require group health plans to provide participants and beneficiaries who would
otherwise lose group health coverage after certain events with the opportunity
to elect to continue that coverage for a limited period of time. That period is
usually not more than 18 months after termination of employment or 36 months if
the coverage would be lost due to the participant's death or divorce. The
person entitled to elect continuation coverage, called the "qualified
beneficiary," may be required to pay the group premium rate for the coverage,
plus 2 percent.
As part of making continuation coverage available,
employers and plan administrators must give participants and qualified
beneficiaries certain disclosure notices, which explain the rights given by the
federal law and the manner in which these rights must be exercised. The
qualified beneficiary's ability to make use of COBRA continuation coverage may
depend on the adequacy of the disclosure notices.
Since COBRA's enactment, the department has received
numerous inquiries from the public regarding the timing and content of the
disclosure notices. COBRA has also been amended several times, and the
department is considering updating a model notice that it issued in 1986 to
take into account these amendments. Also, the passage more recently of the
Health Insurance Portability and Accountability Act of 1996 (HIPAA) and other
health-related legislation have affected the significance of the COBRA
disclosure requirements.
"The information furnished in response to this request will
assist the department in evaluating the need for regulatory guidance in this
important area," noted Assistant Secretary Olena Berg, head of the department's
Pension and Welfare Benefits Administration.
Written comments should be provided to the department on
or before November 24. They should be addressed to the Office of Regulations
and Interpretations, Pension and Welfare Benefits Administration, Room N-5669,
U.S. Department of Labor, 200 Constitution Ave. NW, Washington, DC 20210, Attn:
COBRA RFI.
Copies of the request for information are available from
the Public Disclosure Room, N-5638 at the above address, telephone (202)
219-8771, or via PWBA's Internet address at http://www.dol.gov/ebsa/ under "What's New in PWBA."
This information will be made available to sensory
impaired individuals upon request. Voice phone call (202) 219-8921, TDD phone
1-800-326-2577.
Archived News Release Caution: Information may be out of date.
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