The COVID-19 pandemic has been a defining event in many ways, including the unprecedented disruption it has caused to nearly every aspect of daily life, including healthcare benefits. In response to the pandemic and the resulting economic fallout, the federal government implemented numerous measures to provide relief to individuals and businesses, including extensions to COBRA healthcare benefits. However, the end of the COVID-19 national emergency also means the conclusion of extended COBRA deadlines, as normal COBRA timing rules are set to resume soon.
End of COVID-19 National Emergency and Its Impact on COBRA Deadlines
On April 10, 2023, President Joe Biden formally signed legislation to end the COVID-19 national emergency, effective immediately. This legislation includes provisions that will impact the healthcare benefits of qualified beneficiaries, including those eligible for COBRA coverage.
The COVID-19 pandemic has resulted in numerous extensions to COBRA deadlines due to the widespread disruptions and financial hardships caused by the pandemic. Such extensions have allowed for more time to elect COBRA coverage, make premium payments, and receive COBRA notices. However, with the end of the national emergency, these extensions will soon run out, and qualified beneficiaries will need to resume normal COBRA timing rules.
Dates to note
The COVID-19 national emergency officially ended on April 10, 2023. However, there is still an “Outbreak Period” in effect, which has extended certain deadlines under COBRA. This Outbreak Period is set to end on July 10, 2023, meaning that normal COBRA timing rules will once again apply.
Normal COBRA Timing Rules to Apply Once Again
With the end of the COVID-19 national emergency and Outbreak Period, plan administrators and employers will need to apply regular COBRA timing rules to COBRA election, payment, and notice deadlines. These changes mean that qualified beneficiaries will be subject to the standard 60-day deadline to elect COBRA coverage, the 45-day deadline to make an initial COBRA premium payment, and the 30-day deadline to make subsequent COBRA premium payments.
COBRA Election Deadlines
The 60-day deadline for qualified beneficiaries to elect COBRA coverage will once again be in effect. Plan administrators must ensure the provision of accurate and timely COBRA election notices to eligible participants. Qualified beneficiaries should be aware that there will be no further extensions for elections, and they will need to adhere to the strict deadlines as mandated.
COBRA Premium Payment Deadlines
The 45-day deadline for qualified beneficiaries to make the initial COBRA premium payment will be back in effect, with a 30-day deadline to make subsequent COBRA premium payments also in place. Failure to make premium payments within these prescribed deadlines will result in the termination of COBRA coverage.
COBRA Election Notice Deadlines
The 14-day deadline for plan administrators to provide COBRA election notices to qualified beneficiaries is back in effect. Plan administrators should review previous communications sent to eligible participants regarding the tolling of COBRA election and premium payment periods and provide updated communications if necessary. Proper communication is key to ensuring that qualified beneficiaries do not miss their COBRA election deadlines and are fully aware of the importance of timely premium payments.
Administrative Processes
Plan administrators should review and adjust administrative processes to account for the end of the tolling requirement to avoid unintentionally extending COBRA deadlines beyond the end of the COVID-19 emergency. They should ensure that all necessary records and systems accurately reflect the updated deadlines and must provide the appropriate level of education and communication to qualified beneficiaries.
The end of the COVID-19 national emergency marks a significant change for qualified beneficiaries of COBRA coverage, as the extended deadlines due to the pandemic will soon come to an end. With the normal COBRA timing rules reinstated, plan administrators and eligible participants must be diligent in adhering to the prescribed deadlines. Administrators must review and update all necessary systems and ensure proper communication to enable qualified beneficiaries to remain in compliance with COBRA regulations. Failure to observe deadlines may result in the loss of valuable healthcare coverage.