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Release Date: 05/25/2004
Release Number: 04-946-NAT
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Washington, DC - The U.S. Department of Labor
today announced final rules implementing the notice requirements under the
Consolidated Omnibus Budget Reconciliation Act (COBRA) for employees,
employers and plan administrators. |
“These
rules will make sure workers and their families understand their rights
under COBRA and make it easier for employers and plan officials to meet
their notice obligations. We want to make sure that individuals do not
lose their group health coverage because they lack information about the
steps to take to protect those rights. The rules also will reduce the
likelihood of costly disputes," said Ann L. Combs, Assistant
Secretary of Labor for the Employee Benefits Security Administration (EBSA).The
final rules, which are similar to the rules proposed on May 28, 2003, set
minimum standards for the timing and contents of the notices required
under COBRA. These rules also provide model notices to be used by group
health plans to assist them in satisfying the COBRA notice requirements. |
Under
COBRA, most group health plans must give employees and their families the
opportunity to temporarily continue their group health coverage when
coverage would otherwise be lost for reasons such as termination of
employment, divorce or death. |
In
order to give plans enough time to modify their notice procedures, the new
rules will be effective the first plan year that begins six months after
publication of the rules in the Federal Register. Before that date, plans
may rely on either the proposed rules or the final rules (including the
model forms as proposed or as finalized) to meet their COBRA notice
obligations. |
Model
notices contained in the regulation will be available for download from
EBSA’s Web site at www.dol.gov/ebsa. The final regulations are scheduled
to be published in the May 26, 2004 Federal Register and will be available
on EBSA’s Web site. |
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U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7773 or TTY 202.693.7755. |
