DOL Proposed Rule Will [Finally] Expand E-deliveryOne of the many collateral impacts from the COVID-19 Pandemic was the expansion of a remote workforce on a national scale. Communication with employees and clients relied on electronic methods in an unprecedented way. Despite the mobilization of the workplace, the DOL rules as related to health and welfare plan documents remained stuck in a pre-COVID era. A 2020 safe harbor permitted pension plans to expand their use of e-delivery, yet the department declined extension of this new rule to health and welfare plans.
Employers have been stuck with the 2002 electronic delivery safe harbor, which requires a workforce with work-related email access as an essential part of the job (‘wired at work’), or affirmative consent to receive plan materials electronically. In the July 22 news release, the DOL notes :
“Group health plans currently print and mail up to 11 billion sheets of paper each year. The department estimates the proposal could save group health plans $3.9 billion over 10 years while giving participants and beneficiaries easier, more reliable access to their health plan information.”
To take advantage of the new rule, employers would need a valid email address for each employee, and an online posting for the covered documents. In response to a participant request for a plan document, employers may send that material via email.
Some challenges still exist under the rule as proposed. For example, it does not apply to all plan materials, leaving
HIPAA notices, SBCs and certain other Section 125 plan disclosures still under the ‘old’ e-delivery requirements. Additionally, employers will need to coordinate with carriers and TPAs to determine where the materials themselves can be housed online, and what assistance vendors can offer in this regard. The comment period remains open, so we are hopeful that industry recommendations may be considered in a finalized rule.
The proposed rule can be viewed here.
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