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INDUSTRY NEWS
August 1, 2004 - On May 26, 2004, the Department of
Labor (DOL) released final regulations changing the COBRA administration
process and notification requirements. The final regulations are
effective November 26, 2004.
The final
regulations mandate notification requirements of the COBRA provision of
part 6 of title 1 of ERISA and also apply (for purposes of COBRA) to
section 4980B of the Internal Revenue Code. Upon reviewing commentary
from numerous organizations, the Department of Labor re leased the final
regulations in the May 26, 2004 Federal Register (29 CFR Part 2590 –
Health Care Continuation Coverage; Final Rule).
The final
regulations change both the General Notice and the Qualifying Event
Election Notice described in the proposed regulations. A major change
to the General Notice is it requires a carrier contact/department for
further information on continuation coverage. The DOL stated many
organizations argued during the comment period to eliminate
plan-specific information because of higher cost and the fact the
information may be invalid at the time the person experiences the
qualifying event (potentially years in the future). The DOL stated,
“They believe that covered employees and spouses need to know the name
of the plan and a plan contact for further continuation coverage and
plan information.”
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On May 28, 2003, the Department of Labor (DOL) released proposed
regulations changing the COBRA administration process and notification
requirements. The proposed regulations are not due to become effective
until January 1, 2004 but they recommend you review your firm’s COBRA
notifications immediately. As with most proposed regulations, the DOL
allows time for employers to submit concerns and recommendations so
additional changes may be made prior to the effective date. If you are a
subscriber to our “Annual Maintenance Agreement” your software will be
updated as the changes happen. If you would like to enroll, please
contact our sales department by phone 800-325-1957 or email
Sales.
For more information review our monthly
newsletter.
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On February 3, 1999, the Federal Government released the Final
Regulations for the COBRA legislation. Upon initial review, the Final
Regulations merely document the changes that have taken place over the
past twelve years. Our legal advisors have changed many of the
software's notifications to meet the Final Regulations. If you own
Version 6.5 (or older) of the COBRA Administration Manager,
COBRA Solutions recommends it be upgraded to the newest 32-bit
application. Please visit our Customer Care site at
http://www.csisupport.com for further information.
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