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Release Date: 05/23/2003
Release Number: 03-264
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Washington, DC - The U.S. Department of Labor
today announced proposed rules clarifying the requirements for notices
under the Consolidated Omnibus Budget Reconciliation Act (COBRA) for
employees, employers and plan administrators. The proposal provides
guidance and model notices for workers and family members to continue
their group health care coverage. |
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“More than 5 million Americans become eligible for
COBRA health benefits each year,” said Assistant Secretary of Labor Ann
L. Combs. "We estimate up to 50,000 of those eligible for COBRA may
miss the opportunity to take the coverage because they did not obtain
notices required by the law. |
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“The department is contacted by thousands of
individuals and employers about the notice provisions each year. These
proposed rules are a big step forward to ensure that individuals receive
good information about their rights to COBRA coverage and know what steps
to take to protect those rights. The rules and model notices also will
assist employers and group health plans to comply with their obligations
under the law. We look forward to suggestions from the public on how to
improve these important proposed rules." |
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Under COBRA, most group health plans must give
employees and their families the opportunity to elect a temporary
continuation of their group health coverage when coverage would otherwise
be lost for reasons such as termination of employment, divorce or death.
COBRA requires that certain notices be given before individuals can elect
COBRA coverage. The plan administrator must give employees and spouses a
general notice explaining COBRA when the employees and spouses first
become covered under the plan. When an event occurs that would trigger a
right to elect COBRA coverage, either the employer or the employee and his
or her family members must notify the plan of the event. Finally, when the
plan receives this notice, the plan must notify individuals of their COBRA
rights and allow them to elect continuation coverage. |
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Public comments on the proposed regulations should be
submitted to the U.S. Department of Labor, Employee Benefits Security
Administration (EBSA), Room N-5669, 200 Constitution Ave., N.W.,
Washington, D.C. 20210. The proposed regulations are scheduled to be
published in the May 28, 2003 Federal Register. A fact sheet on the
proposal is available on EBSA’s Web site at www.dol.gov/ebsa. |
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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. |
