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Article: Rule clarifies COBRA notice requirements.(Health Insurance)(Consolidated Omnibus Budget Reconciliation Act of 1986.)
- Article from:
- National Underwriter Life & Health-Financial Services Edition
- Article date:
- June 14, 2004
- Author:
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THE FEDERAL EMPLOYEE BENEFITS Security Administration has issued a final rule that spells out what employers have to do regarding health insurance continuation notices for departing employees.
The regulation affects all employers who must comply with the Consolidated Omnibus Budget Reconciliation Act of 1986.
In practice, COBRA requires most U.S. employers with at least 20 employees to offer departing health plan members continuation benefits.
Benefits experts have known since COBRA was enacted that employers must advise incoming and outgoing employees about their COBRA rights. But the new regulation gives the first official, clear-cut COBRA ...