Proposed Rule to Clarify COBRA Notices
The Consolidated Omnibus Reconciliation Act of 1985 (COBRA) requires that certain notices be provided in connection with an employee's COBRA rights. The proposed regulations are intended to provide guidance regarding the provision of such notifications and to reduce the risk of inadvertent violations. Model forms are included for two types of notices, as indicated below. The effective date of the regulations will be the first day of the first plan year that occurs on or after January 1, 2004. The proposed regulations address four types of notices:
| 1. |
General Notice of Continuation Coverage (29 CFR Part 2590.606-1)
Covers the general notice of COBRA rights provided by the group health plan at the time coverage begins.
(The notice may be included in the plan's summary plan description.) |
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Model form of notice included in regulations |
| 2. |
Notice Requirements for Employers (29 CFR Part 2590.606-2)
Creates rules for an employer to provide notice to the plan administrator of the occurrence of a qualifying event. |
| 3. |
Notice Requirements for Covered Employees and Qualified Beneficiaries (29 CFR Part 2590.606-3)
Addresses the responsibilities of qualified beneficiaries to provide notice to the plan administrator of a qualifying event or a disability. |
| 4. |
Notice Requirements for Plan Administrators (29 CFR Part 2590.606-4)
Deals with notices that plan administrators must provide regarding COBRA rights upon the occurrence of a qualifying event and subsequent to the election of COBRA coverage. |
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Model form of notice included in regulations |
The proposed rule was published at 68 Federal Register 31831 on May 28, 2003.
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