[Federal Register Volume 69, Number 120 (Wednesday, June 23, 2004)]
[Rules and Regulations]
[Pages 34920-34923]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-13949]


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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

[[Page 34921]]

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