ConnectYourCare continues to work toward answers during these challenging and uncertain times for our readership—spanning clients, participants, brokers, partners, and even our own employees and local communities. And with this article, we’d like to shed further light on the latest developments around Disaster Relief Notice 2020-01, including how it specifically impacts the already complex topic of COBRA administration.
The relief notice—recently issued by the U.S. Department of Labor’s (DOL) Employee Benefits Security Administration (EBSA) and the Internal Revenue Service (IRS)—extends the time for plan officials to furnish benefit statements, annual funding notices, and other notices and disclosures required by ERISA.
In simpler terms, it provides both participants and plan administrators extra time to comply with certain deadlines related to COBRA, Health Care Flexible Spending Accounts (FSAs), and Health Reimbursement Arrangements (HRAs).
[Note: Groups not subject to ERISA (e.g., church or government plans) and plans not subject to ERISA (e.g., Dependent Care Assistance Programs and Health Savings Accounts or Commuter benefits) may not be required to comply with this Rule. You should consult your legal and benefits advisors to determine what impact this Rule has on your plans.]
For employees not eligible for Medicare and considering COBRA, it can be beneficial for employers to educate employees on other options, such as the Marketplace or a private insurance exchange. ConnectYourCare currently partners with HealthCompare, which helps employees find a private insurance option that fits their needs.
If you’re interested in learning more about alternative COBRA options, or have questions about continuation coverage, click here.