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The Departments of Labor and Health and Human Services issued an updated template and related materials for the summary of benefits and coverage (SBC). The materials need to be used for plan years beginning on or after January 1, 2021. This updated template must be used for the 2021 plan year’s open enrollment period.
Employers use the SBC document to provide information to their employees about health plan coverage and plan costs. Its purpose is to help employees better understand their coverage and make it easier to compare options when shopping for new coverage. The SBC requirement applies to group health plans and health insurance issuers. The new template, instructions, and additional resources can be downloaded from the Department of Labor’s website.
Employers should be prepared to use the new template for the 2021 plan year. Prior to the 2021 plan year:
- Employers with an insured plan should check to make sure their insurance carrier is using the correct version of the SBC template.
- Employers with a self-funded plan should check with their third party administrator or broker/consultant to ensure that they are using the new template.
National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.
