On April 28, 2020, the Departments of Labor (DOL) and the Treasury (Departments) issued deadline relief to help employee benefit plans, plan participants and plan service providers impacted by the COVID-19 outbreak. Thereafter, on Feb. 26, 2021, DOL Disaster Relief Notice 2021-01 clarified the duration of this relief.

Certain time frames are extended for health participants to:

• 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.

The relief extended the time for plan officials to furnish benefit statements and other notices and disclosures required under ERISA, if good faith efforts are made to provide the documents as soon as administratively practical.

The relief requires employers to disregard the Outbreak Period when enforcing certain employee benefit plan deadlines and gives plan sponsors additional time to distribute plan notices and disclosures. Under federal law, this period cannot exceed one year. Because the Outbreak Period began on March 1, 2020, the relief was expected to expire on Feb. 28, 2021. However, this guidance allows the relief to extend beyond this date in some situations.

The DOL also acknowledges that full and timely compliance with ERISA’s disclosure and claims processing requirements by plans and service providers may not always be possible. In the case of fiduciaries that have acted in good faith and with reasonable diligence under the circumstances, the DOL’s approach to enforcement will be marked by an emphasis on compliance assistance, and includes grace periods and other relief.

COVID-19 Relief Extends COBRA, HIPAA and Other Plan Deadlines

DOL Guidance on COVID-19 Relief for Employee Benefit Plans