End of COVID-19 National Emergency and Public Health Emergency Lead to Significant Changes for Employee Benefit Plans
On April 10, 2023, President Biden signed H.J.Res.7, officially declaring the end of the COVID-19 National Emergency. Separately, May 11, 2023 marked the end of the Public Health Emergency declared by the Department of Health and Human Services (“HHS”). The end of these two emergency periods means big changes for employee benefit plans, which should ensure that plan documents and policies are up-to-date.
The conclusion of each emergency declaration resulted in distinct changes for employee benefit plans. The most significant impacts are set forth below.
End of the COVID-19 National Emergency resumes pre-pandemic deadlines for employee-benefit plans
When the COVID-19 National Emergency was declared in March 2020, the Department of Labor (“DOL”), Department of Treasury (“Treasury”), and the Internal Revenue Service (“IRS”) published guidance “tolling” (or pausing) certain deadlines for employee benefit plans. These deadlines were tolled during the “Outbreak Period” from March 1, 2020 until the earlier of (1) one year from the date an individual is eligible for relief or (2) sixty days after the end of the National Emergency.
The COVID-19 National Emergency was originally scheduled to end on May 11, 2023, and the DOL issued guidance stating that the Outbreak Period will end July 10, 2023, which is sixty days after May 11, 2023. Although the Biden Administration actually declared the end of the COVID-19 National Emergency one month early, the DOL has not issued any updated guidance indicating that the Outbreak Period will end earlier than July 10, 2023.
Hence, after July 10, 2023, the following pre-pandemic deadlines for employee benefit plans will resume:
• 30-day window to elect HIPAA special enrollment
• 60-day window to elect CHIPRA special enrollment
• 60-day window to elect COBRA continuation coverage
• 30-45-day period to timely pay COBRA premiums
• 60-day period to notify plan of a qualifying event or disability determination
• Timeframe for plan sponsor to provide a COBRA election notice
• Timeframe for participant to file claims, appeals, and requests for external review
End of the Public Health Emergency means employee benefit plans are no longer required to cover certain COVID-related services
During the Public Health Emergency, employee benefit plans were required to cover COVID-19 tests and related services, including COVID-19 vaccines, without requiring participants to share any costs. However, the Public Health Emergency ended on May 12, 2023. This means that health plans are no longer required to provide COVID-19 tests and related services at no cost.
Please contact your benefit plan counsel to learn more about how the expiration of these COVID-19 emergency declarations will impact the administration of your plan.