DOL Issues Final Rules On COBRA Notices

Final rules governing health care coverage notices under the Consolidated Omnibus Budget Reconciliation Act (COBRA) have been issued by the U.S. Dept. of Labor (DOL). The rules, which are similar to those the DOL proposed last year, set minimum standards for the timing and contents of the COBRA notices. The rules also provide model notices to be used by group health plans. Under COBRA, many group health plans must give employees and their families the chance to stay in their group health plan after termination of employment, divorce, or death.

In order to give plans sufficient time to modify their notice procedures, the new DOL rules will be effective the first plan year that begins six months after publication in the Federal Register. Until then, plans may rely on either the proposed rules or the final rules to meet their COBRA obligations.

"These (new) 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," said Ann Combs, assistant secretary of labor for the Employee Benefits Security Administration (EBSA). "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."

Model notices are available from the EBSA website at www.dol.gov/ebsa.