Group Health Plan Alert: New Cobra Regulations Require Action by Year End

The United States Department of Labor has published final regulations which clarify and expand the obligations of group health plans to provide notice of COBRA rights to plan participants and qualified beneficiaries. These new regulations become applicable to notice obligations arising in plan years beginning on or after November 26, 2004. For calendar year health plans, this means that changes must be in place no later than January 1, 2005.

With the issuance of the final regulations, group health plan sponsors and administrators must now review and revise initial COBRA notices and COBRA election notices, and must implement certain new notices. Plan documents must also be amended, and reasonable procedures must be implemented in order to ensure compliance with the technical requirements of the regulations.

COBRA compliance can be both time consuming and challenging, and the ramifications of non-compliance quite significant. If you have questions about the impact of the final COBRA regulations upon your group health plan, or if you need assistance with your compliance initiatives, Bowles Rice has an experienced team in place to help. Our attorneys can assist you with the preparation of the required notices, plan document amendments and related requirements.

Disclaimer: The above information was compiled by Bowles Rice McDavid Graff & Love LLP for reference purposes only and does not constitute the rendering of legal, financial, or other professional advice, nor does this information necessarily reflect the opinions or interests of this Firm. Bowles Rice McDavid Graff & Love LLP does not take responsibility for the information contained in the articles nor for the content of any related websites.