Final COBRA Regulations Change Employer Notice Obligations

By F. Denise Russell (San Antonio)

Originally published September 10, 2004

On May 26, 2004, the Department of Labor (DOL) issued final COBRA regulations. These regulations contain significant changes from the proposed regulation of 2003. Many of the departures simplify the regulations as proposed. Of particular interest to employers sponsoring a COBRA eligible health plan are the changes in the notice requirements for delivery and content, the responsibilities of COBRA eligible individuals (qualified beneficiaries), and the requirement of two additional notices.

The General Notice

The general rights notice requirements have been more thoroughly outlined than in the past. First, The revised regulations provide that a “general notice” of COBRA rights must be provided to covered employees and their spouses within 90 days after they become covered under the plan. This notice generally informs participants of their rights to continue insurance coverage under COBRA following a