COVID-19 “PAUSE” FOR COBRA, HIPAA AND OTHER COVID-19 EMPLOYEE BENEFITS GUIDANCE

The Federal Government has recently issued a whole host of COVID-19 guidance relating to participant elections for employee benefit plans. The guidance includes the following:

COBRA and Other Participant Deadlines “Pause”

In order to minimize the chance that participants lose benefits coverage because they miss the usual deadlines during the COVID-19 National Emergency, the Department of Labor and Internal Revenue Service require that plans ignore the COVID-19 “Outbreak Period” to determine if a participant has missed a deadline for the following:

  • HIPAA Special Enrollment Rights
  • COBRA elections and premium payments
  • Notice to employer of COBRA qualifying event or disability
  • Claims procedures

The “Outbreak Period” is defined as beginning March 1, 2020 and ending 60 days after the announced end of the COVID-19 National Emergency. For example, if the COVID-19 National Emergency ends on July 31, the Outbreak Period will end on September 29, 2020. This will significantly extend the time participants have to act and employers should make sure that their representatives who are responsible for handling benefits are aware of these new deadlines. See the specific guidance: HERE .

In addition, the DOL issued new Model COBRA forms and they can be found: HERE

Mid-Year Election Changes – Medical Plan Coverage, Health Flexible Spending Accounts (FSAs) and Dependent Care FSAs

New IRS guidance permits employees to make changes to their Medical Plan, Health FSA and Dependent Care elections due to COVID-19. Unlike the time extensions described above, these are not mandatory changes and an employer is not required to implement them. If an employer does adopt any new changes, employees can change their coverage prospectively only. Employees can also increase or decrease the amounts they are contributing to a Health FSA or a Dependent Care FSA. However, as of now, any amounts already contributed to a Health FSA or Dependent Care FSA have to stay in the accounts. See the IRS guidance: HERE

If you have any questions relating to this eAlert, or any other COVID-19 issue, please contact NFC’s COVID-19 Response Team as we are closely monitoring the rapidly changing legal landscape relating to this global pandemic. Please feel free to reach out to the NFC Attorney you typically work with or call us directly.

Share this Article
Disclaimer

By clicking this button and submitting information to us, you will be submitting certain personally identifiable information, or information which used together with other information, can be used to identify you and/or identify information about you, to Nukk-Freeman & Cerra, PC (“NFC”). Such information may be used by NFC to contact or identify you. Personally identifiable information may include, but is not limited to, your [name, phone number, address and/or] email address. We collect this information for the purpose of providing services, identifying and communicating with you, responding to your requests/inquiries, and improving our services. We may use your personally identifiable Information to contact you with time sensitive employment law e-alerts, marketing or promotional offers, invitations to complimentary and informational webinars and seminars, and other information that may be of interest to you. However, by providing any of the foregoing information to you, we are not creating an attorney-client relationship between you and NFC: nor are we providing legal advice to you. You may opt out of receiving any, or all, of these communications from us by following the unsubscribe link in any email we send. However, this will not unsubscribe you from receiving future communications from us which are based upon an independent request, relationship or act by you.