Silvia Marroquin / Article /
Employees have an extended timeframe to, in part, elect COBRA, make COBRA payments, add dependents, and appeal denials of benefits. As the timeframe may extend beyond the current plan year, in some cases with coverage going into effect retroactively for many months, there are concerns about what gaps in insurance coverage there could be. This may particularly be an issue with stop loss insurance.
Employers must disregard the Outbreak Period, March 1, 2020 until 60 days after the announced end of the National Emergency, for each of the following topics below. At this point, an end to the National Emergency has not been announced, and it should be noted that the announced end date of the National Emergency may not be the same date as the end of the Public Health Emergency period announced by HHS (currently October 23, 2020). For purposes of the below examples, February 28, 2021 is used as the end of the Outbreak Period, but it may end earlier than this date, in which case the following examples are subject to the change.
COBRA: applies to all health plans of employers with 20 or more employees.
Potential Issues
Special Enrollment Rights: applies to major medical plans.
Potential Issues
Claims for Benefits: applies to all ERISA-covered plans.
Potential Issues
Appeals of Denied Claims: applies to all ERISA-covered plans.
Potential Issues
External Review: applies to all non-grandfathered major medical plans.
Potential Issues
Below you will find a breakdown of how these rules apply to each line of coverage.
* Carriers are claims fiduciaries, but which one will adjudicate claims, should there be a change in carrier? Informal responses from the major medical carriers suggest that, in a fully insured arrangement, the medical carrier at the date of service is responsible for the claims, assuming the extended emergency period timeline is met, premiums were paid, affected claims were for a covered service, and plan requirements are otherwise met.
Employer Action
Employers should consider the following:
For a currently insured medical plan going selffunded (or vice versa):
For a currently self-funded medical plan remaining self-funded and with the same stop loss carrier and/or TPA at renewal:
For a currently self-funded medical plan remaining self-funded but switching stop loss carriers and/or TPAs at renewal: