Change to ERISA reporting requirements
If a group health plan has a material or significant reduction in benefits, a description of the changes must be given to a plan participant and their dependents no later than 60 days after the change is effective. As an alternative, group health plans may give plan members and dependents a summary plan description at regular intervals of not more than 90 days.
HIPAA makes several changes to COBRA Continuation law. These changes are effective January 1, 1997.
Group health plans subject to COBRA (those with 20 or more employees) must inform current COBRA continues of these changes by November 1, 1996. Notice to Individuals Electing COBRA Continuation
The health Insurance Portability and Accountability act of 1996 (HIPAA) has amended COBRA law. This notice describes the changes to COBRA and the election options you may have. Contact your employer if you have any questions regarding this information.
Newly acquired dependents Present Law:
You may add a newly acquired dependent into your COBRA continuation. This dependent is not eligible for independent elections, second qualifying events or an 11 month extension due to disability.
Changes effective 1-1-97:
the amendment allows a child born to or places for adoption with the member who is on COBRA to be defined as a qualified person. As a qualified person, the child:If a Dependent is added premium will be adjusted accordingly. Dependent Coverage must be elected within the plans normal enrollment period. Contact your employer if you wish to enroll a newborn or adopted child.
11-month extension due to disability Present Law:
A Member or dependent may extend COBRA continuation period from 18 months to 29 months in determined by the Social Security Administration (SSA) to be disabled before the COBRA qualifying event.
Changes effective 1-1-97:
A member or Dependent may extend COBRA if determined by SSA to be disabled before the qualifying event of within 60 days after a qualifying event. To request an 11-moth extension , you must submit a copy of the Social Security Disability determination notice to your employer within 60 days after the notice is received. Also, your request must be made within the 18-month COBRA period.
Other Group Coverage
Cobra ends when you are covered by another group health plan and you have satisfied the pre-existing exclusion provision in the new plan. Under HIPAA, if you have a break on coverage of more than 63 days, you may have to satisfy a pre-existing exclusion under a new group health plan.
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