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Archived News Release Caution: Information may be out of date. Archived News Release Caution: Information may be out of date.
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Labor Secretary Robert B. Reich said today more than one million
workers whose health care benefits will be protected if they lose their jobs
must be notified by Nov. 1 of their new rights by their current or former
employers.
Reich said the new health care benefits, provided by congressional
passage of the Kennedy-Kassebaum health bill, would allow more children to be
covered, allow for extra care for the disabled, and allow people the fullest
health care options available to them.
"When you're out of work, you have your hands full looking for a new
job. Workers shouldn't have to worry about the limitations of their health care
coverage. These measures are an important step in giving hard-working Americans
some peace of mind," said Reich.
Changes in the law don't take effect until Jan. 1, but all extended
benefits will be applied retroactively. If an employee is laid off or loses a
job in the next few months he should know the fullest extent to which his
health care needs will be met.
The changes to COBRA would allow employees to expand their benefits to
include the child of an employee who may be born or adopted during the period
of COBRA coverage.
An additional change extends COBRA coverage from 18 months to 29 months
for those employees who are determined to be disabled either at the time they
qualify for COBRA or during the first 60 days after they qualify for COBRA.
A final amendment limits exclusions for pre-existing conditions. In the
past if an employee with a pre-existing condition found another health care
provider, that provided some but not all coverage, then the COBRA employer
could terminate the employee's COBRA continuation coverage. Under the new law
it will be harder for employers to make these exclusions.
The Technical Bulletin on changes to COBRA under HIPPA is attached and
is also available on the Internet at
http://www.dol.gov/ebsa/programs/ori/techrel/cobra.htm.
Archived News Release Caution: Information may be out of date.
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