COVID Outbreak Period & Benefit Time Frame Extensions May End Soon

February 17, 2021

On May 4, 2020, the Department of Labor (DOL) and the IRS issued a joint notice titled Extension of Certain Timeframes for Employee Benefit Plans, Participants, and Beneficiaries Affected by the COVID-19 Outbreak, (the “Joint Notice”). As noted below, the Joint Notice extended certain time frames under ERISA and the Code for group health plans and other welfare plans, and participants and beneficiaries of these plans during the COVID-19 National Emergency. In applying these time frames, the period runs from March 1, 2020 until sixty (60) days after the announced end of the National Emergency (the “Outbreak Period”). 

As we proceed into 2021, it is unclear when the national emergency will end, however the extension of these time frames under ERISA § 518 and Code § 7508A, can be no more than one year (ending at the latest on February 28, 2021) at such time all normal time periods would continue to apply. These temporary time frame extensions include:

  • The 30-day period (or 60-day period, if applicable) to request special enrollment;
  • The 60-day election period for COBRA continuation coverage;
  • The date for making COBRA premium payments;
  • The date for individuals to notify the plan of a qualifying event or determination of disability;
  • The date within which individuals may file a benefit claim under the plan's claims procedure;
  • The date within which claimants may file an appeal of an adverse benefit determination under the plan's claims procedure pursuant;
  • 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.

The maximum extension of one year can only be increased or modified by amending ERISA and the Code. As a result, the IRS and the DOL may together announce the end of the Outbreak Period as of February 28, 2021. Though a new extension effective March 1, 2021 could be forthcoming, as of today there is no information on any new time frame extensions.

Health and benefits professionals and their advisors should be aware of the imminent end to the relief provided under the IRS/DOL Joint Notice and start planning to rollback processes to the applicable regular time frames effective March 1, 2021.

Chard Snyder will continue monitoring this matter and will issue timely updates as they become available.  

Find text of the regulations here:

https://www.govinfo.gov/content/pkg/FR-2020-05-04/pdf/2020-09399.pdf.