COVID-19 Relief and Updated COBRA Timelines Continue in 2021 Until Further Notice
2020 has come to an end, but COVID-19 relief remains in effect.
Flores continues to adhere to relief requirements provided by the Department of Labor (DOL) and Internal Revenue Service (IRS) (the “agencies”), including the extension of certain COBRA timeframes.
We have worked diligently to ensure a remarkable benefit experience. We have adjusted our processes and systems to ensure your compliance with relief requirements. Flores is proactively communicating to COBRA Participants outside of their Grace Period.
This notice outlines the adjustments that have been made thus far to our processing periods and summarizes the current guidance that has been provided by the government agencies.
Key Takeaways
- Flores has resumed terminating COBRA participants due to non-payment as individuals are reaching their one-year statutory limit for payment to be deferred.
- We will continue to terminate participants due to non-payment on the earlier of either one year from the date first eligible for the DOL’s relief, or 60 days following the announced end of the National Emergency.
- Terminations are being processed when a COBRA participant requests a termination either online or in writing, or when the COBRA eligibility period ends.
- Flores is continuing to report paid through dates for each COBRA participant.
- Please report to Flores any implemented changes to carrier processing to ensure Flores communications with COBRA participants are accurate.
- Flores has updated all COBRA participant invoicing to include details on the extended deadlines and requirements to cancel COBRA coverage.
- Flores proactively sent reminders in February 2021 to all COBRA participants who would have normally been terminated due to non-payment to confirm their intention to remain active on COBRA.
Charlotte, NC – January 29, 2021 – On April 29, 2020, the U.S. Department of Labor (DOL) and Internal Revenue Service (IRS) (the “Agencies”) issued guidance for group health plan sponsors related to deadline extensions for group health plans, including extension coverage through the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), health care flexible spending accounts (HCFSA), and health reimbursement arrangements (HRA).
Deadline extensions to the established timelines are provided through the duration of the COVID-19 State of Emergency declaration, plus a 60-day “Outbreak Period” following the date the COVID-19 State of Emergency ends. Since an end date has not yet been specified for the current State of Emergency declaration, at this time a specific end date for the “Outbreak Period” cannot be determined. EBSA Disaster Relief Notice 2020-01 indicates that the disregarded period may not exceed one year as specified in ERISA Section 518, and as amended by section 3607 of the Coronavirus Aid, Relief and Economic Security Act (CARES Act).
Extensions apply retroactively to actions required beginning March 1, 2020. Timeline extensions for COBRA include:
- COBRA qualified beneficiary coverage election periods;
- COBRA payment deadlines;
- COBRA qualifying event notice requirements for the employer;
- Employee notice requirement of qualifying events to the employer; and
- COBRA coverage period extension requests due to disability.
At this time, an end date has not been specified for the National State of Emergency, so the “Outbreak Period” cannot yet be determined. As Plan Administrator, you as an employer should work directly with your insurance carriers to select the termination process that best fits your business objectives: updating COBRA participants based on COBRA coverage end dates or based upon paid-through dates. If changes to processing are made, please be sure to report these changes to Flores.
Flores Actions: What We Are Doing in Response
- As a COBRA Administrator, Flores has continued to capture COBRA elections, changes, terminations, and premium paid through dates on our reporting.
- Our system was adjusted to accommodate the changes to COBRA timelines required by the DOL and IRS guidance. To ensure compliance with the DOL directive, we are not terminating COBRA coverage due to non-payment until individuals have reached their one-year statutory limit for payment deferment or 60 days after the announced end of the National Emergency.
- Flores will continue to terminate COBRA coverage if a cancellation request is received in writing or online, or when the participant’s COBRA continuation period expires.
- Flores has reached out to COBRA participants who would have otherwise terminated due to non-payment to ensure participants' intentions to remain active.
- Flores has updated all COBRA participant invoicing to include details on the extended deadlines and requirements to cancel COBRA coverage.
Employer Actions: What Employers Can Do in Response
- You may wish to reach out to your insurance carriers to confirm how they are processing your COBRA eligibility data, or reconsider how you are processing reinstatements if you handle COBRA eligibility internally. Some employers have found that updating coverage based on premium paid through dates is the most effective way to navigate the current environment.
- In addition to the required notices that Flores sends to all COBRA participants, you may wish to reach out to any participants who have not made timely premium payments to determine their intentions for COBRA coverage.
- Review the weekly COBRA reporting sent by Flores or the real-time reporting available on the Flores247 Employer Portal to monitor any outstanding premium payments.
We will continue our commitment to keeping you in compliance with the latest guidance and providing a remarkable benefit experience for you, as well as your COBRA participants. Thank you for your continued trust and support! Please contact your dedicated Account Manager with questions or concerns via email or phone at (800) 532-3327.