EBSA Press Release: Millions of Workers Affected By Changes in Health Care Coverage [10/15/1996]

Archived News Release — Caution: Information may be out of date.

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Labor Secretary Robert B. Reich said today more than one million workers whose health care benefits will be protected if they lose their jobs must be notified by Nov. 1 of their new rights by their current or former employers.

Reich said the new health care benefits, provided by congressional passage of the Kennedy-Kassebaum health bill, would allow more children to be covered, allow for extra care for the disabled, and allow people the fullest health care options available to them.

"When you're out of work, you have your hands full looking for a new job. Workers shouldn't have to worry about the limitations of their health care coverage. These measures are an important step in giving hard-working Americans some peace of mind," said Reich.

Changes in the law don't take effect until Jan. 1, but all extended benefits will be applied retroactively. If an employee is laid off or loses a job in the next few months he should know the fullest extent to which his health care needs will be met.

The changes to COBRA would allow employees to expand their benefits to include the child of an employee who may be born or adopted during the period of COBRA coverage.

An additional change extends COBRA coverage from 18 months to 29 months for those employees who are determined to be disabled either at the time they qualify for COBRA or during the first 60 days after they qualify for COBRA.

A final amendment limits exclusions for pre-existing conditions. In the past if an employee with a pre-existing condition found another health care provider, that provided some but not all coverage, then the COBRA employer could terminate the employee's COBRA continuation coverage. Under the new law it will be harder for employers to make these exclusions.

The Technical Bulletin on changes to COBRA under HIPPA is attached and is also available on the Internet athttp://www.dol.gov/ebsa/programs/ori/techrel/cobra.htm.

Archived News Release — Caution: Information may be out of date.