Almost three years after President Trump declared a COVID-19 National Emergency and Public Health Emergency, the Biden Administration announced that the emergency declarations will end May 11, 2023. The end of the National Emergency and Public Health Emergency will impact employers as ERISA-covered group health plan sponsors. Notably certain COBRA and other group health plan timeframes that were extended during the National Emergency will revert back to pre-pandemic rules.
Background
In April 2020, the U.S. Department of Labor, Internal Revenue Service and Department of Treasury delayed certain ERISA and COBRA-specific timeframes for employee benefit plans, participants and beneficiaries impacted by the COVID-19 pandemic.
The Final Rule established a new time convention beginning with the start of the COVID-19 National Emergency (March 1, 2020) and ending 60 days after the end of the National Emergency calling this date the “Outbreak Period.” Employee benefit plans subject to ERISA and/or the Internal Revenue Code were required to disregard notice and payment deadlines occurring during the Outbreak Period, including
- the 60-day COBRA election period;
- the 45- or 30-day COBRA premium payment period;
- the employer/plan administrator 30/14 day COBRA election notice period;
- the 30- or 60- day HIPAA special enrollment period; and
- the time periods for filing benefit claims and appeals.
Timing
When the guidance was issued, it was widely believed that the National Emergency would end in 2020 and the full Outbreak Period would last less than one year. In fact, the authority under which the government extended the timeframes only allows the relief to last for a maximum one-year period. The first one-year period ended February 28, 2021 but was subsequently renewed for additional one-year periods in 2021 and 2022. The President announced that in 2023, the National Emergency would be renewed only until May 11, 2023.
What Happens Now
The “pause” on COBRA payments and timeframes, along with the time period for HIPAA special enrollments and benefit claims and appeals, will reset 60 days after May 11, 2023, which is July 10, 2023. At that time, all tolled COBRA elections, payments and other extended timeframes will revert back to pre-pandemic deadlines.
Additional guidance on administering the end of the National Emergency extension periods is expected. Employers should be aware of the upcoming changes and be ready to communicate with plan participants and COBRA continuants.
BAS’ Cobra Control Services is staying attuned for additional guidance and will communicate with their COBRA continuants as required.
