Page:United States Statutes at Large Volume 100 Part 1.djvu/264

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PUBLIC LAW 99-000—MMMM. DD, 1986

100 STAT. 228 26 USC 52.

29 USC 1162.

42 USC 1395.

PUBLIC LAW 99-272—APR. 7, 1986

year. Under regulations, rules similar to the rules of subsections (a) and (b) of section 52 of the Internal Revenue Code of 1954 (relating to employers under common control) shall apply for purposes of this subsection. "SEC. 602. CONTINUATION COVERAGE.

"For purposes of section 601, the term 'continuation coverage' means coverage under the plan which meets the following requirements: "(1) TYPE OF BENEFIT COVERAGE.—The coverage must consist of coverage which, as of the time the coverage is being provided, is identical to the coverage provided under the plan to similarly situated beneficiaries under the plan with respect to whom a qualifying event has not occurred. "(2) PERIOD OF COVERAGE,—The coverage must extend for at least the period beginning on the date of the qualifying event and ending not earlier than the earliest of the following: "(A) MAXIMUM PERIOD.—In the case of— "(i) a qualifying event described in section 603(2) (relating to terminations and reduced hours), the date which is 18 months after the date of the qualifying event, and "(ii) any qualifying event not described in clause (i), the date which is 36 months after the date of the qualifying event. "(B) END OF PLAN.—The date on which the employer ceases to provide any group health plan to any employee. "(C) FAILURE TO PAY PREMIUM.—The date on which coverage ceases under the plan by reason of a failure to make timely payment of any premium required under the plan with respect to the qualified beneficiary. "(D) REEMPLOYMENT OR MEDICARE ELIGIBILITY.—The date on which the qualified beneficiary first becomes, after the date of the election— "(i) a covered employee under any other group health plan, or "(ii) entitled to benefits under title XVIII of the Social Security Act. "(E) REMARRIAGE OF SPOUSE.—In the case of an individual who is a qualified beneficiary by reason of being the spouse of a covered employee, the date on which the beneficiary remarries and becomes covered under a group health plan. "(3) PREMIUM REQUIREMENTS.—The plan may require payment of a premium for any period of continuation coverage, except that such premium— "(A) shall not exceed 102 percent of the applicable premium for such period, and "(B) may, at the election of the payor, be made in monthly installments. If an election is made after the qualifying event, the plan shall permit payment for continuation coverage during the period preceding the election to be made within 45 days of the date of the election. "(4) No REQUIREMENT OF INSURABILITY.—The coverage may

not be conditioned upon, or discriminate on the basis of lack of, evidence of insurability.