IRS and DOL Updates to COBRA

The Department of the Treasury and Department of Labor issued joint rules and EBSA Disaster Relief Notice 2020-01, announcing extensions on certain time frames with federal COBRA and reimbursement plans like FSAs and HRAs. As of today, here is what you need to know:

• This extension applies to both the standard COBRA 60-day election time frame as well as the 30-day grace period for premium payments. This means qualified beneficiaries can elect COBRA coverage and make payments up until 60 days after the end of the COVID-19 outbreak period.

• The deadline for individuals filing a claim for benefits under health FSAs and HRAs has also been extended.

• The above noted extensions are retroactive to March 1, 2020, the declared beginning date of the COVID-19 national emergency.

• President Donald Trump has not yet declared an end date for the COVID-19 national emergency. Sixty days after the COVID-19 national emergency is declared over, the above noted extensions will be discontinued.

For additional information about the rules and notice, click here. Encompass, alongside our partner, Discovery, is here to help you navigate this new guidance. We aim to move quickly and thoughtfully to adapt processes, systems and services in a manner that provides the best possible client and participant experience.