Effective Date of Summary of Benefits and Coverage (SBC) requirements officially delayed
Earlier Guidance
On August 22, 2011, the Department of Health and Human Services (“HHS”), Department of Labor (”DOL”), and Internal Revenue Service (“IRS”) jointly issued proposed regulations and guidance materials regarding the Summary of Benefits and Coverage (“SBC”) requirements with an applicability date beginning March 23, 2012 (76 Fed. Reg. 162 (Aug. 22, 2011)). The proposed regulations provided that the participants be provided with two information pieces by that date regarding their health benefits and coverage including the following:
- Summary of Benefits and Coverage document; and
- Uniform Glossary of terms.
Delayed Effective Date
On November 17, 2011, the HHS, DOL, and IRS jointly issued a set of Frequently Asked Questions (“FAQs”) regarding implementation of the SBC provisions, among other things. The agencies stated (1) they received many comments on the proposed regulations that would be taken into account in formulating the final regulations, and (2) they intend to issue final regulations as soon as possible. Noting the critical role played by the standards to be developed and issued by the agencies, the agencies provided in FAQ-1 that “until final regulations are issued and applicable, plans and issuers are not required to comply with PHSA §2715.” The FAQ response goes on to provide “it is anticipated that the Departments’ final regulations when issued will include an applicability date that gives plans and issuers sufficient time to comply.” The new FAQs can be accessed here.
Note: We informally confirmed with the Department of Health and Human Services (“Department”) that the FAQ reflects the Department’s views, operates as a further extension of the earlier guidance establishing the March 23, 2012 date, and may be relied upon.
Please contact us if you have any questions regarding the contents of this Alert.
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The information contained in this ALERT is intended for general information purposes only and does not constitute legal advice relative to a specific situation.