SEC. 421. COBRA CLARIFICATIONS.
Title[ Title IV\Subtitle B Contents
Subtitle B--Clarification of Certain Continuation Coverage Requirements
(a) Public Health Service Act.--
(1) Period of coverage.--Section 2202(2) of the Public
Health Service Act (42 U.S.C. 300bb-2(2)) is amended--
(A) in subparagraph (A)--
(i) by transferring the sentence immediately
preceding clause (iv) so as to appear immediately
following such clause (iv); and
(ii) in the last sentence (as so
transferred)--
(I) by striking ``an individual''
and inserting ``a qualified
beneficiary'';
(II) by striking ``at the time of a
qualifying event described in section
2203(2)'' and inserting ``at any time
during the first 60 days of continuation
coverage under this title'';
(III) by striking ``with respect to
such event,''; and
(IV) by inserting ``(with respect to
all qualified beneficiaries)'' after
``29 months'';
(B) in subparagraph (D)(i), by inserting before ``,
or'' the following: ``(other than such an exclusion or
limitation which does not apply to (or is satisfied by)
such beneficiary by reason of chapter 100 of the
Internal Revenue Code of 1986, part 7 of subtitle B of
title I of the Employee Retirement Income Security Act
of 1974, or title XXVII of this Act)''; and
(C) in subparagraph (E), by striking ``at the time
of a qualifying event described in section 2203(2)'' and
inserting ``at any time during the first 60 days of
continuation coverage under this title''.
(2) Notices.--Section 2206(3) of the Public Health Service
Act (42 U.S.C. 300bb-6(3)) is amended by striking ``at the time
of a qualifying event described in section 2203(2)'' and
inserting ``at any time during the first 60 days of continuation
coverage under this title''.
(3) Birth or adoption of a child.--Section 2208(3)(A) of the
Public Health Service Act (42 U.S.C. 300bb-8(3)(A)) is amended
by adding at the end thereof the following new flush sentence:
``Such term shall also include a child who is born to or placed
for adoption with the covered employee during the period of
continuation coverage under this title.''.
(b) Employee Retirement Income Security Act of 1974.--
(1) Period of coverage.--Section 602(2) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1162(2)) is
amended--
(A) in the last sentence of subparagraph (A)--
(i) by striking ``an individual'' and
inserting ``a qualified beneficiary'';
(ii) by striking ``at the time of a qualifying
event described in section 603(2)'' and inserting
``at any time during the first 60 days of
continuation coverage under this part'';
(iii) by striking ``with respect to such
event''; and
(iv) by inserting ``(with respect to all
qualified beneficiaries)'' after ``29 months'';
(B) in subparagraph (D)(i), by inserting before ``,
or'' the following: ``(other than such an exclusion or
limitation which does not apply to (or is satisfied by)
such beneficiary by reason of chapter 100 of the
Internal Revenue Code of 1986, part 7 of this subtitle,
or title XXVII of the Public Health Service Act)''; and
(C) in subparagraph (E), by striking ``at the time
of a qualifying event described in section 603(2)'' and
inserting ``at any time during the first 60 days of
continuation coverage under this part''.
(2) Notices.--Section 606(a)(3) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1166(a)(3)) is amended by
striking ``at the time of a qualifying event described in
section 603(2)'' and inserting ``at any time during the first 60
days of continuation coverage under this part''.
(3) Birth or adoption of a child.--Section 607(3)(A) of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
1167(3)) is amended by adding at the end thereof the following
new flush sentence:
``Such term shall also include a child who is born to or placed
for adoption with the covered employee during the period of
continuation coverage under this part.''.
(c) Internal Revenue Code of 1986.--
(1) Period of coverage.--Section 4980B(f)(2)(B) of the
Internal Revenue Code of 1986 is amended--
(A) in the last sentence of clause (i)--
(i) by striking ``at the time of a qualifying
event described in paragraph (3)(B)'' and
inserting ``at any time during the first 60 days
of continuation coverage under this section'';
(ii) by striking ``with respect to such
event''; and
(iii) by inserting ``(with respect to all
qualified beneficiaries)'' after ``29 months'';
(B) in clause (iv)(I), by inserting before ``, or''
the following: ``(other than such an exclusion or
limitation which does not apply to (or is satisfied by)
such beneficiary by reason of chapter 100 of this title,
part 7 of subtitle B of title I of the Employee
Retirement Income Security
Act of 1974, or title XXVII of the Public Health Service
Act)''; and
(C) in clause (v), by striking ``at the time of a
qualifying event described in paragraph (3)(B)'' and
inserting ``at any time during the first 60 days of
continuation coverage under this section''.
(2) Notices.--Section 4980B(f)(6)(C) of the Internal
Revenue Code of 1986 is amended by striking ``at the time of a
qualifying event described in paragraph (3)(B)'' and inserting
``at any time during the first 60 days of continuation coverage
under this section''.
(3) Birth or adoption of a child.--Section 4980B(g)(1)(A) of
the Internal Revenue Code of 1986 is amended by adding at the
end thereof the following new flush sentence:
``Such term shall also include a child who is born
to or placed for adoption with the covered
employee during the period of continuation
coverage under this section.''.
(d) Effective <<NOTE: 26 USC 4980B note.>> Date.--The amendments
made by this section shall become effective on January 1, 1997,
regardless of whether the qualifying event occurred before, on, or after
such date.
(e) Notification <<NOTE: 26 USC 4980B note.>> of Changes.--Not
later than November 1, 1996, each group health plan (covered under title
XXII of the Public Health Service Act, part 6 of subtitle B of title I
of the Employee Retirement Income Security Act of 1974, and section
4980B(f) of the Internal Revenue Code of 1986) shall notify each
qualified beneficiary who has elected continuation coverage under such
title, part or section of the amendments made by this section.
Contents
Contents
Prev
Next
Last
