Hurricane Katrina: COBRA and HIPAA Relief

For a business with a health plan directly affected by Hurricane Katrina, the following deadlines have been effectively extended; see 70 Fed. Reg. 5550055502 (9/21/05):

• Notifying employees that they are eligible to elect Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) continuation coverage (COBRA election notice).

• Certifying that a former employee was covered under the businesss health plan (Health Insurance Portability and Accountability Act of 1996 (HIPAA) certificate).

In determining these deadlines, an employers plan must disregard the period from Aug. 29, 2005Feb. 28, 2006. The same period is to be disregarded in deciding whether to take into account an employees past coverage under another employers health plan to determine whether his or her pre-existing conditions qualify for current coverage (the 63-day rule).

For an employers plan to be directly affected by Hurricane Katrina, one of the following must have been located in a Federal Emergency Management Agency (FEMA)-designated individual assistance area (see Exhibit 1):

• The business (for plans covering a single employers employees).

• An employer that employs more than 50% of the participants covered under the plan (for plans covering multiple employers employees).

• The office of the plan or the plan administrator.

• The office of the plans primary recordkeeper.

Note: Employees received similar deadline extensions under COBRA and HIPAA; see 70 Fed. Reg. 55500 55502 (9/21/05). They also received deadline extensions for filing or appealing claims decisions; see Nissenbaum, Tax Clinic, Hurricane Katrina: Health, Retirement and Disability Benefits, to ensure a plan honors these extensions.

From Ruth Wimer, Washington, DC