The Consolidated Omnibus Budget
Reconciliation Act of 1985 (COBRA) provides that under certain
circumstances participants and beneficiaries of group health plans
that satisfy the definition of qualified beneficiaries under
COBRA may elect to continue group health coverage temporarily
following events known as qualifying events that would otherwise
result in loss of coverage. COBRA provides that the Secretary of
Labor (the Secretary) has the authority under section 608 of the
Employee Retirement Income Security Act of 1974 (ERISA) to carry
out the provisions of Part 6 of title I of ERISA. The Conference
Report that accompanied COBRA authorized the Secretary to issue
regulations implementing the notice and disclosure requirements of
COBRA. Under the regulatory guidelines, plan administrators are
required to distribute notices as follows: a general notice to be
distributed to all participants in group health plans subject to
COBRA; an employer notice that must be completed by the employer
upon the occurrence of a qualifying event; a notice and election
form to be sent to a participant upon the occurrence of a
qualifying event that might cause the participant to lose group
health coverage; an employee notice that may be completed by a
qualified beneficiary upon the occurrence of certain qualifying
events such as divorce or disability; and, two other notices, one
of early termination and the other a notice of unavailability. Also
included in the ICR are two model notices that the Department
believes will help reduce costs for service providers in preparing
and delivering notices to comply with the regulations. On February
17, 2009, President Obama signed the American Recovery and
Reinvestment Act (ARRA) of 2009, Public Law 111-5. ARRA includes a
requirement that the Secretary of Labor (the Secretary), in
consultation with the Secretaries of the Treasury and Health and
Human Services, develop model notices. These models are for use by
group health plans and other entities that, pursuant to ARRA, must
provide notices of the availability of premium reductions and
additional election periods for health care continuation
coverage.
US Code:
29
USC 1166 Name of Law: Employee Retirement Income Security
Act
The increases in PRA cost
burden are due to updates in labor and postage costs related to
inflation. Additionally, the Affordable Care Act permits dependents
up to age 26 to remain on their parents' health insurance policies.
This statutory change took effect prior to the previous submission;
however, this change was inadvertently not factored into cost
estimates at that time. A sizable increase in the number of
dependents living outside the household is evident in this
submission. As an upper-bound estimate of the impact of the
statutory change, the Department determined that 1.7 million
dependents living outside the home were aged 19 to 25 and had never
married. Many of these individuals would not have fallen under this
ICR prior to enactment of the ACA. The cost associated with these
individuals was approximately $807,000. Finally, the previous PRA
submission counted service provider labor hours as hour burden,
which resulted in double-counting the labor cost, because the labor
cost was also included in the cost burden. Upon further
consideration, the agency has concluded that, because outside
service providers are expected to absorb all of the burden, the
costs in this submission should be counted as maintenance and
operations cost burdens, and not as hour burden.
$0
No
No
Yes
No
No
Uncollected
Chris Cosby 202
693-8540
No
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
SSCOBRA13renewal.doc
Notice Requirements of the Health Care Continuation Coverage Provisions