While many in the U.S. are resuming pre-COVID lifestyles, pandemic relief continues for many employee benefit plans provisions. The government-declared COVID-19 National Emergency has not been declared over and therefore modifications to certain benefit plan rules remain in place.
In 2020, many of the basic COBRA election and payment timeframes were extended to take into account hardships from the COVID-19 national emergency. Plans subject to ERISA or the Internal Revenue Code became required to disregard timeframe due dates falling during the “COVID-19 Outbreak Period” which was defined as the period starting March 1, 2020 and ending 60 days after the end of the National Emergency. In 2021, the Outbreak Period was limited to a maximum disregarded period of one year (the “disregarded period”).
This guidance remains law and plans still must disregard the Outbreak Period when calculating the following COBRA due dates:
- The 60 day COBRA election period
- The 45 day first COBRA payment due date
- The ongoing COBRA payment premium due date (including the 30 day grace period)
- The date for individuals to notify the plan of a qualifying event or determination of disability
- The date for providing a COBRA notice
In 2021, guidance was issued clarifying that the disregarded period for electing COBRA and paying for COBRA run concurrently. This means
- An individual who elects COBRA outside of the initial 60-day election period has one year plus 105 days after the COBRA notice was provided to make a first payment.
- An individual who elects COBRA within the initial 60-day election period has one year plus 45 days after the COBRA election to make a first payment.
- Subsequent premium payments are due one year from the date the payment would otherwise be due.
Plans should continue to apply the COVID-19 extension periods to COBRA coverage while the COVID-19 National Emergency remains in place.
