Provides for an open enrollment period under the Medicare supplemental health insurance policies (Medigap) program for certain retired workers enrolled in Medicare part B (Supplementary Medical Insurance) and entitled to benefits under Medicare part A (Hospital Insurance) whose coverage under a group health plan is terminated.
Amends the Employee Retirement Income Security Act of 1974 (ERISA), the Public Health Service Act, and the Internal Revenue Code (IRC) to provide for COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985) continuation coverage for certain retired workers whose coverage under a group health plan is terminated. Sets forth a special rule for certain dependents in such case as well as permits an increased level of premiums.
Amends ERISA and the IRC to mandate that advance notice of any material reduction in covered services or benefits provided under a group health plan relating to retiree health benefits be furnished to participants and beneficiaries as well as to the Secretary of Labor. Prescribes a civil penalty for violations of such requirement.