Not yet a Member?
HR Magazine is highlighting the next generation of HR leaders.
Is your employee handbook ready for the New Year? With SHRM’s Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Get the HR education you need without travel expenses or time out of the office.
Join us in Chicago for the latest trends and technology in talent management, and what to expect in the future.
Updated SBC template and sample completed SBC now available
On April 23, 2013, the U.S. Department of Labor (DOL) posted its
latest set of frequently asked questions. The new FAQs address issues related to the Patient Protection and Affordable Care Act’s requirement that health insurance issuers and group health plans provide participants and enrollees with a
summary of benefits and coverage (SBC) describing the health plan’s covered benefits, cost-sharing provisions, coverage limitations and exceptions, and other key features.
Notably, the agency is extending for an additional year several safe harbors set forth in earlier sets of FAQs. The guidance lists the specific safe harbor provisions that will be extended, including those related to the circumstances in which an SBC may be provided electronically; penalties for failure to provide the SBC or uniform glossary; an issuer’s obligation to provide an SBC for benefits it does not insure; expatriate coverage; and the use of carve-out arrangements. The DOL is also extending until Sept. 24, 2014—provided certain conditions are met—the enforcement safe harbor applicable to insurance products that are no longer being offered for purchase.
The document notes it “supersedes any previous subregulatory guidance (including FAQs) stating that enforcement relief for the SBC and uniform glossary requirements is limited to the first year of applicability.”
Updated Template and Sample
In addition, the DOL has made available an updated SBC template and
sample completed SBC to use for plan coverage beginning on or after Jan. 1, 2014, and before Jan. 1, 2015, which the DOL refers to as the “second year of applicability.” Although the updated templates include places to enter whether the plan or coverage provides minimal essential coverage (MEC) and minimum value (MV), the agencies charged with enforcing the SBC requirements will not require plans or issuers to use the new template for the second year of applicability so long as they provide a cover letter or disclosure statement with the SBC stating whether the plan provides MEC and MV. The new set of FAQs provides sample disclosure statements.
The first 13 sets of FAQs can be found here.
Ilyse Schuman is a shareholder in the Washington, D.C., office of
Littler Mendelson. She provides strategic counsel and representation to clients on a broad array of workplace issues and developments in Congress and executive branch federal agencies. © 2013 Littler Mendelson. All rights reserved. Republished with permission.
Related SHRM Articles:
Related External Article:
SHRM Online Health Care Reform Resource Page
Keep up with the latest news. Sign up for SHRM’s free
Compensation & Benefits e-newsletter
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Your session has expired. Please log in again before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Choose from dozens of free webcasts on the most timely HR topics.
SHRM’s HR Vendor Directory contains over 3,200 companies