COVID-19 Relief Extends COBRA, HIPAA Deadlines

Recently, President Joe Biden again formally extended the COVID-19 National Emergency, which was set to expire on March 1, 2022. This most recent extension means that the deadlines listed below continue to be tolled for one year (or, if earlier, 60 days from the end of the National Emergency).

Required Participant Extensions

• Request special enrollment under HIPAA;
• Elect COBRA continuation coverage, pay COBRA premiums and notify the plan of a COBRA qualifying event; and
• File benefit claims and appeals and request external review of denied claims.

Extended Participant Deadlines

The initial relief provided participants in ERISA-covered plans with additional time to comply with certain deadlines affecting COBRA continuation coverage, special enrollment periods, claims for benefits, appeals of denied claims and external review of certain claims. Specifically, the relief extended (these will toll one year on a per person basis or 60 days after the emergency period is declared over, whichever occurs first):

• HIPAA time frames: The 30-day period (or 60-day period, if applicable) to request special enrollment.
• COBRA time frames: The 60-day period for qualified beneficiaries to elect COBRA coverage; the date for making COBRA premium payments (which is generally at least 45 days after the day of the initial COBRA election, and a grace period of at least 30 days for subsequent premium payments); and the date for individuals to notify the plan of a qualifying event or disability determination (in general, at least 60 days from the date of the event, loss of coverage, or disability determination). Note COBRA election and payment period extensions will run concurrently
• Claims procedures time frames: The date within which individuals may file a benefit claim under the plan’s claims procedure, and the date within which claimants may file an appeal of an adverse benefit determination under the plan’s claims procedure.
• External review process time frames: The date within which claimants may file a request for an external review after receipt of an adverse benefit determination or final internal adverse benefit determination, and the date within which a claimant may file information to perfect a request for external review upon a finding that the request was not complete.

Application of the One-year Limit

The extension of Notice 2021-01 for another year clarifies that individuals and plans subject to the initial relief can extend the applicable deadlines until the earlier of:

• One year from the date they were first eligible for relief; or
• 60 days after the announced end of the National Emergency (the end of the Outbreak Period).

On the applicable date, the time frames for individuals and plans with periods that were previously disregarded will resume. In no case will a disregarded period exceed one year.

Example:

• If a qualified beneficiary would have been required to make a COBRA election by September 1, 2021, that requirement is delayed until August 31, 2022. This date is the earlier of one year from September 1, 2021, or 60 days after the end of the Outbreak Period (which remains ongoing).

Download the update below.

SOURCE: Zywave