On Monday, April 10, 2023, President Biden signed into law H.J. Res. 7, a resolution ending the COVID-19 National Emergency. The National Emergency declaration has been in place since March 2020. Upon signature, the National Emergency is over immediately even though the Public Health Emergency remains in effect. The President indicated previously that both the National Emergency and the Public Health Emergency would end May 11, 2023.
The National Emergency extended certain timeframes for group health plans. Among the extensions were the time periods to elect and pay for COBRA continuation coverage. The Public Health Emergency mandated plans to cover certain COVID-19 benefits. Now that the National Emergency and Public Health Emergency have different end dates, group health plans need to pay attention to actions needed to comply with the different rules.
Recently, the U.S. Department of Labor issued frequently asked questions explaining how the end of the National Emergency will impact existing COBRA election and payment extensions. A copy of the guidance may be accessed by clicking here.
The President’s signature on April 10 ending the National Emergency starts the counting of the 60-day “Outbreak Period” for winding down COBRA payment and election extensions. Since the National Emergency ended April 10, 2023, the Outbreak Period should end Friday, June 9, 2023 and group health plans subject to COBRA will no longer toll election and payment deadlines after June 9th.
The end of the National Emergency starts the reinstatement of standard COBRA election and payment periods earlier than anticipated. There has been hints that the government may change the rules to align the impact of the end of the National Emergency and the Public Health Emergency. We are waiting for formal guidance from the U.S. Department of Labor on the exact timeframes for the end of the COBRA extensions. When the guidance is released, BAS and Cobra Control Services will communicate with impacted employers and implement administrative processes to comply with published rules.