In this ALERT we are going to continue summarizing key government guidance issued over the past two months. It may be old news to some but hopefully will serve as a reminder.
DOL FAQs
As you are probably aware, the DOL has published a number of FAQs, the most recent being FAQ Part V. Two Health Care Reform items that have been the subject of much discussion are the automatic enrollment provisions and the advance notice of material modifications. FAQ Part V provides a little breathing room.
Automatic Enrollment
PPACA requires employers with more than 200 full-time employees to automatically enroll employees in the health plan and continue enrollment of current employees. However, the effective date of the automatic enrollment provision was not clear. Q&A 2 provides that various governmental agencies (EBSA, Treasury) will work together to develop the rules for determining full-time employee status. The DOL expects to develop the rules by 2014.
Summary of benefits and coverage explanation and advance notice of material modifications
PPACA requires that asummary of benefits and coverage be presented in a uniform format that does not exceed 4 pages in length and does not include print smaller than 12-point font. In addition, a plan is required to notify participants 60 days in advance if a group health plan makes any material modification in any of the terms of the plan or coverage that is not reflected in the most recently provided summary of benefits and coverage. PPACA requires that the various governmental agencies develop standards not later than 12 months after the date of enactment.
FAQ 4 provides that plans do not have to comply with the 60 day advance notice requirement until the plans are required to provide the summary of benefits and coverage.
Note: all links are active as of the date of issuance of this ErisaALERT.
Disclaimer: This material is for the sole purpose of providing general information and does not under any circumstances constitute legal advice and should not be used as a substitute for legal advice. You should seek the advice of counsel when applying the requirements to your plan. For more information on this ErisaALERT contact us by phone at 610-524-5351 and ask for Mary Andersen or 973-994-7539 and ask for Theresa Borzelli.
