U. S. Labor Department Helps Hurricane Katrina Victims Preserve Health Benefits

Archived News Release — Caution: Information may be out of date.

WASHINGTON—The U.S. Department of Labor's Employee Benefits Security Administration (EBSA), in conjunction with the Internal Revenue Service, announced an extension of a number of deadlines related to health plan coverage, giving workers and employers affected by Hurricane Katrina additional time to make critical decisions regarding health coverage. 

“We want to make sure that hurricane survivors don't lose health coverage or other important benefits because they were unable to meet the normal deadlines,” said Secretary of Labor Elaine L. Chao.  “This is part of the President's promise to cut through red tape to help Hurricane Katrina survivors and their families resume their lives.”

The relief provides additional time to comply with certain deadlines contained in the Consolidated Omnibus Budget Reconciliation Act (COBRA), the Health Insurance Portability and Accountability Act (HIPAA) and the rules for processing of health claims. 

These deadlines can have a profound impact on workers' health benefits, and the extension will prevent people from missing key events in the immediate aftermath of the storm.  Otherwise, workers could lose eligibility for the continuation of their health benefits or be cancelled for missed premium payments under COBRA.  Workers could also become subject to preexisting condition exclusions preventing them from being covered for their current medical conditions by a new insurer, or lose the ability to join their spouse's health plan.  For more information concerning the deadlines extended, see the attached Fact Sheet. 

The Labor Department and IRS will continue to monitor the situation to address those issues that are most important in helping individuals, employers, and plan sponsors recover from this tragedy.  The agencies expect to publish the notice of extension in the Federal Register on Sept. 21.  For more information on Hurricane Katrina relief, contact the department at 1-866-4USA-DOL or EBSA at 1-866-444-3272.

Read the attached fact sheet.

Archived News Release — Caution: Information may be out of date.