COVID-19 (Coronavirus) Updates: CobraHelp will continue to deliver service excellence and compliance support to our Clients and their Employees during these challenging times. We are working to provide Employers and Agents with the latest legislative updates on a national level. We encourage Employers, Benefits Administration partners and Insurance Agents to learn more about the most recent COVID-19 DISASTER RELIEF updates (the American Rescue Plan Act) here. 
CobraHelp
  • Home
  • About
    • Testimonials
  • Services
    • COBRA Administration
    • State Continuation Administration
    • Retiree (Direct) Billing
    • Leave Management (FMLA & LOA)
  • Resources
    • How COBRA Works
    • How Brokers Benefit with CobraHelp
    • Employer FAQ
    • Broker FAQ/Help
    • Blog
    • ARPA COBRA Premium Subsidy
    • COVID-19 & COBRA
    • HR Tools
  • Contact
800.398.2946​
LOGIN Request a Proposal​
  • Home
  • About
    • Testimonials
  • Services
    • COBRA Administration
    • State Continuation Administration
    • Retiree (Direct) Billing
    • Leave Management (FMLA & LOA)
  • Resources
    • How COBRA Works
    • How Brokers Benefit with CobraHelp
    • Employer FAQ
    • Broker FAQ/Help
    • Blog
    • ARPA COBRA Premium Subsidy
    • COVID-19 & COBRA
    • HR Tools
  • Contact

CobraHelp Blog

BENEFITS | HR | COMPLIANCE
READ: How Brokers Can Cultivate Lasting Client Relationships

Subscribe to The COBRA Advisor newsletter for fresh HR insights, law updates, and more.

Subscribe

COBRA Disaster Relief in 2021: DOL New Guidance

3/2/2021

0 Comments

 
COBRA Extensions
Back in April of 2020, the U.S. Department of Labor, in conjunction with the Department of Treasury and the IRS, issued a Joint Final Rule that went into effect as March 1, 2020 – which was declared the start of the National Emergency due to the COVID-19 pandemic. ​
DOL Issues New Guidance on COBRA Outbreak Period Extensions and Time Frames
**Updated 03/04/21**
The Joint Final Rule extended certain group plan and COBRA deadlines, such as enrollment periods, payment grace periods, claims for benefits, and appeals of denied claims, among other things. The guidelines set forth by the Joint Final Rule extended these health plan deadlines until 60 days after the National Emergency, or “Outbreak Period”, is deemed over. However, in the case of a National Emergency, federal law allows regulatory agencies to suspend statutory requirements for up to 12 months. When the final rule was issued, it was not anticipated that the National Emergency would still be in place more than a year later. As we have now surpassed the end of the 12 months from the beginning of the relief period, many questions have been raised about when statutory deadlines, such as the COBRA election 60-day election period, would revert to normal timeframes.
COBRA Disaster Relief
In response to these circulating questions and inquiries, the DOL has recently issued the Disaster Relief Notice 2021-01 which sets forth the DOL and IRS’ position that the COVID-19 extensions will continue past February 28th, and that all such extensions must be measured on a person-by-person basis – which was not clear from the prior guidance.  To put it more simply, if during the National Emergency a participant or plan sponsor is subject to a statutory deadline for a notice or disclosure subject to these rules, that deadline is delayed for up to 12 months from the original deadline, or until the end of the Outbreak Period, whichever is sooner. This period is referred to as the “Disregarded Period.” This interpretation means that a participant’s deadline for something like a COBRA election is unique to that participant and is based on the original deadline that would have applied absent the National Emergency. That said, in no case will a requirement be delayed for any individual by more than one year. The DOL states the Disregarded Period, or Tolling Period, ends the earlier of:
  1. One year from the date the deadline would have begun running for that individual; or
  2. 60 days from the end of the National Emergency (which is still ongoing).
Individuals and plans with timeframes that are subject to the relief under the Notices will have the applicable periods under the Notices disregarded until the earlier of (a) 1 year from the date they were first eligible for relief, or (b) 60 days after the announced end of the National Emergency (the end of the Outbreak Period).  On the applicable date, the timeframes for individuals and plans with periods that were previously disregarded under the Notices will resume.  In no case will a disregarded period exceed 1 year.  [Emphasis added] 

In the Disaster Relief Notice 2021-01 the DOL provides a few examples of how this interpretation would apply to such things as a COBRA election or an employer required notice or disclosure. The examples that DOL provided are as follows: 
DOL Examples
  • If a qualified beneficiary would have been required to make a COBRA election by March 1, 2020, the Joint Notice delays that requirement until February 28, 2021, which is the earlier of 1 year from March 1, 2020 or the end of the Outbreak Period (which remains ongoing).
  • If a qualified beneficiary would have been required to make a COBRA election by March 1, 2021, the Joint Notice delays that election requirement until the earlier of 1 year from that date (i.e., March 1, 2022) or the end of the Outbreak Period.
  • If a plan (or employer/plan sponsor) would have been required to furnish a notice or disclosure by March 1, 2020, the relief under the Notices would end with respect to that notice or disclosure on February 28, 2021. The responsible plan fiduciary would be required to ensure that the notice or disclosure was furnished on or before March 1, 2021.
Get COBRA Help Now
​Conclusion
The DOL may announce the end of the Outbreak Period at any time and, subsequently, issue a new extension. However, as of the date of this posting, there is no information of any intention of the DOL or IRS to issue any new timeframe extensions. The verdict to extend relief periods on a participant-by-participant basis may be beneficial to some participants but it will also create compliance and administrative challenges for employers and TPAs. Plan sponsors and administrators should be aware of the imminent end to the relief provided under the IRS/DOL Joint Notice and start planning to rollback processes to the applicable regular time frames effective March 1, 2021.

Legal Disclaimer:
​The information in this website is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. No information contained in this post should be construed as legal advice from CobraHelp. or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this Post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.

0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Categories

    All
    2016 Cobra Reporting Deadlines
    ACA Benefits
    ACA Compliance
    Affordable Care Act
    Benefit Admin Solutions
    Cobra Administration
    Cobra Administration Companies
    Cobra Benefits
    Cobra Compliance
    Cobra Compliance 2016
    Cobra Compliance Audit
    Cobra Customer Service
    Cobra Eligibility
    Cobra Employer Requirements
    Cobra For Retirees
    Cobra Guidelines For Employers
    Cobra Non Compliance Penalties
    Cobra Retiree Coverage
    Cobra Rights
    Cobra Services
    Compliance Outsourcing
    Federal COBRA Regulations
    Health Savings Account
    Medicare Compliance Regulations
    Medicare Modernization Act
    Open Enrollment 2017

    HR Outsourcing Services Blog RSS Feed

    Archives

    March 2023
    February 2023
    September 2022
    May 2021
    April 2021
    March 2021
    February 2021
    November 2020
    September 2020
    August 2020
    July 2020
    May 2020
    April 2020
    March 2020
    February 2020
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    March 2018
    January 2018
    October 2017
    August 2017
    July 2017
    April 2017
    February 2017
    November 2016
    October 2016
    September 2016
    September 2015
    February 2015
    January 2015
    April 2014
    March 2014
    February 2014

CONTACT

COBRA Help
1620 N High St 
Denver, CO 80218

Toll Free: (800) 398-2946 
Local: (303) 322-2043
Email: ​cs@mycobrahelp.com ​
​© Copyright 1986-2022 CobraHelp.  All Rights Reserved
HTML Sitemap | XML Sitemap 
Terms & Conditions | Privacy

RESOURCES

​US Department of Labor
Electronic Code of Federal Regulations
Quick Checklist
​For Insurance Agents
​
Career Opportunities
​Participant Login
Email: ​marketing@mycobrahelp.com

​RESOURCES

HR Compliance Tools
FAQ/HELP Brokers
FAQ/HELP Employers
Request Demo
Request Media Kit
​How COBRA Works
​COVID19 Support

​RESOURCES

Connect with us!