The Affordable Care Act (ACA) introduced a series of regulations aimed at improving transparency and understanding of health insurance coverage. The Summary of Benefits and Coverage (SBC) is a key component of these efforts. The SBC is a standardized document that outlines key information about a health insurance plan in a clear and easily understandable format. It helps employees compare different health plans and understand the coverage they are selecting. Employers are generally required to provide a Summary of Benefits and Coverage to employees during the open enrollment period. Here are some key points to consider:
What is the SBC?
Distribution Requirement:
Content of the SBC:
Standardized Format:
The SBC is an important tool in helping employees understand their health coverage options. Employers are responsible for ensuring they provide employees with the required SBCs during open enrollment and as needed throughout the year to keep employees informed about any changes to their coverage. Failure to provide the SBC can result in penalties. It's essential to stay in compliance with the regulations related to SBC distribution.
Benefit Allocation Systems (BAS) provides best-in-class, online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.
MyEnroll360 can Integrate with any insurance carrier for enrollment eligibility management (e.g., Blue Cross, Blue Shield, Aetna, United Health Care, Kaiser, CIGNA and many others), and integrate with any payroll system for enrollment deduction management (e.g., Workday, ADP, Paylocity, PayCor, UKG, and many others).