COBRA Notice At 90 Days

Ed C

I just learned that recent changes to COBRA require employers to give a general notice to new hires at 90 days. My outsourced COBRA administrator told me yesterday that he did not know anything about a notice for new hires. Can someone who really knows explain what I need to do? Thanks.

Geno

Ed,

First of all, consider getting a new COBRA administrator.


COBRA rules require that a General COBRA notice be furnished to each covered employee and covered spouse not later than:

• 90 days after the employee (and spouse, if any) first becomes covered under the plan, or

• The first date upon which the plan administrator must furnish an election notice to the employee, spouse, or dependent.

This notice informs the recipient of the general outline of COBRA and specifically informs the recipient about certain of COBRA's detailed rules which could apply if the recipient loses group health coverage at some later date.

Most importantly, the General COBRA Notice’s description of these detailed rules includes a discussion of the recipient's obligations under COBRA, including informing the Plan Administrator of certain events and of address changes.

I would be glad to give you an example of one or you could Google and get a look at a variety of acceptable formats. But to your original question, yes, the employer owes the eligible new-hire what is referred to as the General Notice.

Geno
SPHR

POPEYE

I agree, what exactly are you paying this "expert" for if they can't stay up with laws and regulations? I too would find a new one pronto.

The notification is called "Global Notification Rights" and should be administered as Geno outlined. Your insurance carrier should be able to assist you in getting the verbiage specific to your plan.

szemcumo

It is highly unlikely that this would ever be checked into but failure to comply could result in HEFTY fines for not sending these out. Mail these out to new ees and covered dependents with proof of mailing, cost 90 cents for the pom receipt. I make a copy of the notice and attach the pom recpt with it and file in ees medical file.

irenesmsaclaims

Good answers all, but the final rules also include many changes and clarifications which were effective on the first day of the plan year after Nov. 26, 2004. Plans have to be amended to include notification details, specific time frames for notifying, both on the employee and employer side. The rules also clarify that an SPD will satisfy the requirements if all of the new provisions are contained in it. If I were an "expert" selling these COBRA administration services, I wouldn't admit that I didn't know this stuff, and would be researching like crazy!!

LindaS

Irene -

My understanding of the new regulations, and have been informed of this by others, is that the notification contained in the SPD is NOT considered to have met the requirements UNLESS you can verify that the notification was received by the dependents as well. The recommendations I have received, and the practice I utilize, is to provide the EE with the SPD but also mail the initial notice to the EE and their dependents. I don't mail separate notices but the envelope is addressed to both the EE and the dependents.

irenesmsaclaims

Linda, actually the final rules don't specifically say that the SPD isn't sufficient unless you can verify that it was received by the dependents, but it does say that providing it to the employee doesn't mean the spouse has been also provided, so your conclusion makes sense, in both the current rules and the final ones. Do you send the SPD and a general initial notice to all when they are eligible and/or covered? You may be able to save yourself some work with the new clarification; however, overkill never hurts.

LindaS

The EE receives the SPD as it outlines coverages, etc. I mail the notice to the EEs home as well as to any eligible dependents IF they do not reside with the EE.