April 30, 2020
Yesterday the Departments of Labor and the Treasury, in
consultation with the Department of Health and Human Services (collectively,
the "Departments") issued new final rules imposing mandatory time
frame extensions for common employee benefits compliance requirements.
The rules
come in response to President Trump's March 13, 2020 Proclamation on
Declaring a National Emergency Concerning the Novel Coronavirus Disease
(COVID-19) Outbreak, and by separate letter a determination invoking a
nationwide national emergency determination under Stafford Act beginning
March 1, 2020 as a result of the COVID-19 outbreak (collectively, the
"National Emergency"). FEMA has since issued emergency declarations
for every state, territory, and possession in the U.S.
In light
of the National Emergency, the Departments state that employers, employees,
and dependents may have difficulty meeting standard time frames with respect
to HIPAA, COBRA, and claims. The new final rule extends certain of those time
frames to assist employers and employees in the process of maintaining
employer-sponsored group health plan coverage.
Relief for Plan Participants, Beneficiaries, Qualified
Beneficiaries, and Claimants
All group
health plans, disability and other employee welfare benefit plans, and
employee pension benefit plans subject to ERISA or the Code must disregard
the period from March 1, 2020 until sixty (60) days after the announced end
of the National Emergency or such other date announced by the Agencies in a
future notice (the "Outbreak Period") for all plan participants,
beneficiaries, qualified beneficiaries, or claimants wherever located in
determining the following periods and dates-
(1) The
30-day period (or 60-day period, if applicable) to request special
enrollment;
(2) The
60-day election period for COBRA continuation coverage;
(3) The
date for making COBRA premium payments;
(4) The
date for individuals to notify the plan of a qualifying event or
determination of disability;
(5) The
date within which individuals may file a benefit claim under the plan's
claims Procedure;
(6) The
date within which claimants may file an appeal of an adverse benefit
determination under the plan's claims procedure pursuant;
(7) The date within which claimants may file a request for an
external review after receipt of an adverse benefit determination or final
internal adverse benefit determination;
and
(8) The date within which a claimant may file information to
perfect a request for external review upon a finding that the request was not
complete.
Relief for Group Health
Plans
With
respect to group health plans, and their sponsors and administrators, the
Outbreak Period shall be disregarded when determining the date for providing
a COBRA election notice.
Later Extensions
The
Agencies will continue to monitor the effects of the Outbreak and may provide
additional relief as warranted.
Conclusion:
The
Departments use April 30, 2020 as the assumed end-date of the National
Emergency in all examples. However, the Departments confirm that this date
was used simply to make the examples clear and understandable. The assumed
April 30 end-date results in an Outbreak Period running from March 1, 2020
through June 29, 2020 (the 60th day after the assumed end of the National Emergency).
If any
participant had one of the time periods occurring during the Outbreak Period,
the new time period would not begin until after the end of the Outbreak
Period. There are examples in the final rule.
For a
copy of the final rule, please click on the link below:
|