April 28, 2020
IRS and DOL Provide Relief for Participants and Plan Sponsors from Certain Time Deadlines Due to COVID-19 Pandemic
The Department of Labor, jointly with the Department of the Treasury, late yesterday, April 28, 2020, issued a notice that extends certain time frames affecting participants’ rights to elect continuation of group health plan coverage under COBRA, and extends the grace period for payment of COBRA premiums, submitting claims for coverage and disputing denials of claims for benefits. The guidance also extends the period of time that a group health plan sponsor or administrator has to provide a COBRA election notice.
A copy of the notice can be found HERE
Agency FAQs were also released related to the guidance.
Essentially, the guidance provides that actions that must be taken with the time period from March 1, 2020 until 60 days after the time the federal government declares the COVID-19 emergency (referred to as the “Outbreak Period”) has ended will be disregarded .
We are preparing a more comprehensive action plan for our clients in the coming days. Please stay tuned.