Health Care Continuation Coverage, Correction [06/23/2004]
Volume 69, Number 120, Page 34920-34923
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DEPARTMENT OF LABOR
Employee Benefits Security Administration
29 CFR Part 2590
RIN 1210-AA60
Health Care Continuation Coverage, Correction
AGENCY: Employee Benefits Security Administration, Labor.
ACTION: Final rule, technical corrections.
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SUMMARY: The Department published in the Federal Register of May 26,
2004, (69 FR 30084) final rules implementing the notice requirements of
the health care continuation coverage (COBRA) provisions of part 6 of
title I of the Employee Retirement Income Security Act of 1974 (ERISA
or the Act). This document makes technical corrections to one of the
final rules and to a model notice published in an appendix to one of
the final rules.
DATES: Effective date: The regulations that are being corrected are
effective on July 26, 2004, and these corrections are effective July
26, 2004.
Applicability date: The regulations that are being corrected apply
to notice obligations arising under the COBRA provisions of part 6 of
title I of ERISA on or after the first day of the first plan year
beginning on or after the date that is six months after May 26, 2004.
FOR FURTHER INFORMATION CONTACT: Lisa M. Alexander or Suzanne M.
Adelman, Office of Regulations and Interpretations, Employee Benefits
Security Administration, (202) 693-8500. this is not a toll-free
number.
SUPPLEMENTARY INFORMATION: On May 26, 2004, the Department of Labor
published final regulations on the notice provisions of part 6 of title
I of ERISA. The regulations comprise four sections. Section 2590.606-1
establishes the time frames within which the general notice of
continuation coverage must be provided and describes the specific
information that the general notice must contain. Paragraph (d) of
Sec. 2590.606-1 permits delivery of a single notice addressed to a
covered employee and the covered employee's spouse at their joint
residence, provided that the plan's latest information indicates that
both reside at that address. paragraph (d) states, on page 30097, that
``nothing in this section shall be construed to create a requirement to
provide a separate notice to dependent children who share a residence
with a covered employer or a covered employee's spouse to whom notice
is provided in accordance with
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this section.'' The term ``covered employer'' in this sentence is an
inadvertent error and should instead be ``covered employee.''
In an appendix to Sec. 2590.606-4, the Department also published a
Model COBRA Continuation Coverage Election Notice for use by single-
employer group health plans. The section of the model notice entitled
``Important Information About Your COBRA Continuation Coverage Rights''
states, on page 30108, that continuation coverage will be terminated
before the end of the maximum period if, among other things, ``a
covered employee becomes entitled to Medicare benefits (under part A,
Part B, or both) after electing continuation coverage.'' The term
``covered employee'' on this page is an inadvertent error and should be
changed ``qualified beneficiary.''
This correction replaces two phrases with the correct terminology
to prevent confusion and improve the clarity of the regulation and
model notice.
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Accordingly, in the Health Care Continuation Coverage Final Rule, FR
Doc. 04-11796, published in the Federal Register on May 26, 2004, on
pages 30084-112, make the following corrections:
Sec. 2590.606-1 [Corrected]
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1. On page 30097, in the third column, in paragraph (d), which is
entitled Single notice rule, in the last sentence, remove the words
``covered employer'' and add in their place the words ``covered
employee.''
Appendix to Sec. 2590.606-4 [Corrected]
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2. On page 30108, in the appendix to Sec. 2590.606-4, the page titled
``Important Information About Your COBRA Continuation Coverage Rights''
is revised to read as follows:
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[GRAPHIC] [TIFF OMITTED] TR23JN04.004
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Signed at Washington, DC, this 15th day of June, 2004.
Ann L. Combs,
Assistant Secretary, Employee Benefits Security Administration,
Department of Labor.
[FR Doc. 04-13949 Filed 6-22-04; 8:45 am]
BILLING CODE 4510-29-C
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