COBRA CLARIFICATIONS.

SEC. 421. COBRA CLARIFICATIONS. (a) Public Health Service Act.— (1) Period of coverage.— Section 2202(2) of the Public Health Service Act (42 U.S.C. 300bb–2(2)) is amended— (A) in subparagraph (A)— (i) by transferring the sentence immediately preceding clause (iv) so as to appear immediately following such clause (iv); and (ii) in the last sentence (as so transferred)— (I) by striking “an individual”and inserting “a qualified beneficiary”; (II) by striking “at the time of a qualifying event described in section 2203(2)” and inserting “at any time during the first 60 days of continuation coverage under this title”; (III) by striking “with respect to such event,”; and (IV) by inserting “(with respect to all qualified beneficiaries)” after “29 months”; (B) in subparagraph (D)(i), by inserting before “, or” the following: “(other than such an exclusion or limitation which does not apply to (or is satisfied by) such beneficiary by reason of chapter 100 of the Internal Revenue Code 110 STAT. 2088of 1986, part 7 of subtitle B of title I of the Employee Retirement Income Security Act of 1974, or title XXVII of this Act)”; and (C) in subparagraph (E), by striking “at the time of a qualifying event described in section 2203(2)” and inserting “at any time during the first 60 days of continuation coverage under this title”. (2) Notices.— Section 2206(3) of the Public Health Service Act (42 U.S.C. 300bb–6(3)) is amended by striking “at the time of a qualifying event described in section 2203(2)” and inserting “at any time during the first 60 days of continuation coverage under this title”. (3) Birth or adoption of a child.— Section 2208(3)(A) of the Public Health Service Act (42 U.S.C. 300bb–8(3)(A)) is amended by adding at the end thereof the following new flush sentence: “Such term shall also include a child who is born to or placed for adoption with the covered employee during the period of continuation coverage under this title.”. (b) Employee Retirement Income Security Act of 1974.— (1) Period of coverage.— Section 602(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1162(2)) is amended— (A) in the last sentence of subparagraph (A)— (i) by striking “an individual” and inserting “a qualified beneficiary”; (ii) by striking “at the time of a qualifying event described in section 603(2)” and inserting “at any time during the first 60 days of continuation coverage under this part”; (iii) by striking “with respect to such event”; and (iv) by inserting “(with respect to all qualified beneficiaries)” after “29 months”; (B) in subparagraph (D)(i), by inserting before “, or” the following: “(other than such an exclusion or limitation which does not apply to (or is satisfied by) such beneficiary by reason of chapter 100 of the Internal Revenue Code of 1986, part 7 of this subtitle, or title XXVII of the Public Health Service Act)”; and (C) in subparagraph (E), by striking “at the time of a qualifying event described in section 603(2)” and inserting “at any time during the first 60 days of continuation coverage under this part”. (2) Notices.— Section 606(a)(3) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1166(a)(3)) is amended by striking “at the time of a qualifying event described in section 603(2)” and inserting “at any time during the first 60 days of continuation coverage under this part”. (3) Birth or adoption of a child.— Section 607(3)(A) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1167(3)) is amended by adding at the end thereof the following new flush sentence: “Such term shall also include a child who is born to or placed for adoption with the covered employee during the period of continuation coverage under this part.”. (c) Internal Revenue Code of 1986.— 110 STAT. 2089 (1) Period of coverage.— Section 4980B(D(2)(B) of the Internal Revenue Code of 1986 is amended— (A) in the last sentence of clause (i)— (i) by striking “at the time of a qualifying event described in paragraph (3)(B)” and inserting “at any time during the first 60 days of continuation coverage under this section”; (ii) by striking “with respect to such event”; and (iii) by inserting “(with respect to all qualified beneficiaries)” after “29 months”; (B) in clause (iv)(I), by inserting before “, or” the following: “(other than such an exclusion or limitation which does not apply to (or is satisfied by) such beneficiary by reason of chapter 100 of this title, part 7 of subtitle B of title I of the Employee Retirement Income Security Act of 1974, or title XXVII of the Public Health Service Act)”; and (C) in clause (v), by striking “at the time of a qualifying event described in paragraph (3)(B)” and inserting “at any time during the first 60 days of continuation coverage under this section”. (2) Notices.— Section 4980B(f)(6)(C) of the Internal Revenue Code of 1986 is amended by striking “at the time of a qualifying event described in paragraph (3)(B)”and inserting “at any time during the first 60 days of continuation coverage under this section”. (3) Birth or adoption of a child.— Section 4980B(g)(1)(A) of the Internal Revenue Code of 1986 is amended by adding at the end thereof the following new flush sentence: “Such term shall also include a child who is born to or placed for adoption with the covered employee during the period of continuation coverage under this section.”. (d) Effective Date.— The amendments made by this section shall become effective on January 1, 1997, regardless of whether the qualifying event occurred before, on, or after such date. (e) Notification of Changes.— Not later than November 1, 1996, each group health plan (covered under title XXII of the Public Health Service Act, part 6 of subtitle B of title I of the Employee Retirement Income Security Act of 1974, and section 4980B(f) of the Internal Revenue Code of 1986) shall notify each qualified beneficiary who has elected continuation coverage under such title, part or section of the amendments made by this section.