The Department of Labor has issued final regulations concerning the timing and substance of notices that employers and plan administrators must issue regarding group health continuation coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). The regulations are codified at 29 CFR Part 2590.

COBRA requires that employers sponsoring group health plans offer employees and their families the opportunity for a temporary extension of health coverage at group rates in certain instances when coverage under the group health plan would otherwise terminate. COBRA requires administrators of group health plans to provide notices to employees and covered dependents: (1) upon commencement of their coverage under the plan; and (2) upon a "qualifying event" that would cause loss of coverage under the plan. The regulations provide sample notices that, after appropriate individualized revisions, plan administrators can use to meet some of their legal obligations.

The regulations become effective concerning COBRA obligations arising on or after the first day of the first plan year beginning on or after November 26, 2004. For calendar year plans, this means the regulations cover events occurring during plan years beginning on or after January 1, 2005.

The regulations comprise four key areas:

1.	General Notice of Continuation Coverage: Requirements imposed on employers and group health plan administrators to provide written notice to each covered employee and his or her spouse of continuation of coverage rights when coverage begins under the plan.
2.	Notice Requirements for Employers: Requirements imposed on employers to provide notice to their employees' group health plan's administrator of certain qualifying events.
3.	Notice Requirements for Covered Employees and Qualified Beneficiaries: Requirements imposed on covered employees and qualified beneficiaries to provide notices to plan administrators under certain circumstances.
4.	Notice Requirements for Plan Administrators: Requirements imposed on plan administrators to notify qualified beneficiaries of their rights to continuation coverage under the plan upon the occurrence of a qualifying event.

The regulations make many changes and clarifications to existing COBRA regulations. Accordingly, employers and plan administrators should:

	Revise existing COBRA notices (both general and qualifying event notices) to meet the requirements.
	Provide notice to an employee and his or her spouse concerning their rights under COBRA within 90 days after "coverage under the plan commences."
	Establish and communicate reasonable procedures that qualified beneficiaries can follow when notifying the plan administrator of a qualifying event, and update the plan's summary plan description to include the new procedures. Without such procedures, an employee's oral communication of a qualifying event to an employee who customarily handles an employer's employee benefit matters could trigger COBRA obligations.
	Notify a person within 14 days after he or she claims that a qualifying event has occurred (such as divorce) if the administrator determines that the person is ineligible for COBRA coverage.
	Notify a qualified beneficiary "as soon as practicable" upon determining that the person's COBRA coverage will end sooner than the maximum period of COBRA coverage applicable for such a qualifying event.
	Modify the plan's summary plan description to include information about the possible availability of a second COBRA election period for persons eligible for trade adjustment assistance under the Trade Act of 2002.

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