New COBRA Notice Procedures Will Soon Apply

Final COBRA Rules Released

On Wednesday, May 26, 2004, the Department of Labor (the “DOL”) published final regulations (the “Final Regulations”) implementing updated notice and disclosure requirements under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”). These Final Regulations are a follow up to the proposed regulations that were published on May 28, 2003 (the “Proposed Regulations”), which we addressed in a Management Alert last June. (See Time to Review COBRA Notices for New Regs ). Plans do not have a great deal of time to comply with these new rules. The Final Regulations will apply to notice 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 that changes must be in place by January 1, 2005.