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The Department of Labor and the IRS have issued regulations effective “immediately” that extend certain employee benefit/ERISA-related notice, election and COBRA premium payment periods in light of the COVID-19 National Emergency. In general, the period beginning March 1, 2020, and ending on the earlier of (1) 60 days after the end of the national emergency (as declared by the President), or (2) March 1, 2021, is ignored for purposes of these deadlines. The notice, election and payment periods will pick up again 60 days after the declared end of the national emergency.
If the national emergency as declared by the President continues for a while, the regulations will have a significant impact on plan administration, especially the administration of employer group health plans. In particular, COBRA qualifying individuals will have up to 120 days after the end of the national emergency to elect COBRA and even longer to pay COBRA premiums for the period of the national emergency.
Good plan governance and fiduciary practice require that these temporary extensions be communicated to affected employees and beneficiaries. The only communication relief provided by the regulations is for COBRA notices, which may be delayed until after the end of the national emergency, although a lengthy delay is sure to sow confusion among COBRA eligible participants and beneficiaries. Employers and plan administrators should consider what to tell plan participants who have previously received notices and are still within an election period.
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NOTICE OR ELECTION PERIOD
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REGULAR TIME PERIOD
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RELIEF PROVIDED
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COBRA election period
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Generally, begins at termination of group health plan coverage and ends not earlier than 60 days after notice to qualified beneficiary
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Election period ends 120 days after end of national emergency.(*)
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COBRA premium payments
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First monthly payment typically due 45 days after election; subsequent payments typically due every 30 days
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Premium payments for period of national emergency generally due no earlier than 90 days after end of national emergency.(*)
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COBRA qualifying beneficiary notifying plan administrator of COBRA qualifying event
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60 days after qualifying event
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Notification period ends 120 days after end of national emergency
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Plan administrator providing COBRA election notices
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14 days after learning of qualifying event
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14 days after learning of qualifying event, which could be as much as 74 days following end of national emergency.
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HIPAA Special Enrollment Period due to loss of other coverage
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30 days after loss of other coverage
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Enrollment period extended to 90 days after end of national emergency. (*)
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HIPAA Special Enrollment Period for new dependent due to marriage, birth or adoption
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30 days after marriage, birth or adoption
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Enrollment period extended to 90 days after end of national emergency. (*)
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HIPAA Special Enrollment Period due to termination of Medicaid or CHIP eligibility
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60 days after termination of Medicaid or CHIP
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Enrollment period extended to 90 days after end of national emergency. (*)
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HIPAA Special Enrollment Period due to becoming eligible for Medicaid or CHIP assistance with respect to group health plan coverage
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60 days after being determined as eligible for assistance
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Enrollment period extended to 90 days after end of national emergency. (*)
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Filing of benefit claims and appeals of adverse benefit determinations
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Various dates depending on type of claim
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Deadline for claim or appeal is at least 60 days after end of national emergency. (*)
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Filing of request for external review of adverse group health plan benefit determinations
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Various dates depending on type of claim
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Deadline for request is at least 60 days after end of national emergency. (*)
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(*) No later than March 1, 2021. The 60-day period is shortened for anyone whose election, etc., period began before March 1, 2020. In those cases, the 60-day period is reduced by the number of days in the election period that had passed before March 1, 2020.
Information contained in this publication should not be construed as legal advice or opinion or as a substitute for the advice of counsel. The articles by these authors may have first appeared in other publications. The content provided is for educational and informational purposes for the use of clients and others who may be interested in the subject matter. We recommend that readers seek specific advice from counsel about particular matters of interest.
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