Skip to main content

Benefits Buzz - May 2023

Benefits Buzz header image

End of COVID-19 National Emergency Impacts Health Plan Deadlines    

On April 10, President Joe Biden signed a resolution ending the COVID-19 national emergency. The national emergency was originally scheduled to end May 11, when the COVID-19 public health emergency ends.

Various employee benefit plan deadlines have been extended during an “outbreak period.” The outbreak period continues until 60 days after the end of the national emergency (or such other date as announced by the federal government).

Deadline extensions that apply during the outbreak period include:

  • HIPAA special enrollment — The 30-day period (or 60-day period, if applicable) to request special enrollment.
  • Claims and appeals — The deadline to file a benefits claim, file an appeal of an adverse benefit determination or request an external review under the plan’s claims and appeals procedures.
  • COBRA notices and premiums — The period for qualified beneficiaries to elect COBRA coverage and make COBRA premium payments, and the date for individuals to notify the plan of a qualifying event or disability determination.

In a set of frequently asked questions from March 29, federal agencies announced that the outbreak period will end July 10 (60 days after May 11). Federal agencies have not adjusted this date for the early end of the national emergency.

Once the outbreak period ends, health plans return to their nonextended deadlines. When the PHE ends, health plans will no longer be required to cover COVID-19 diagnostic tests and related services without cost sharing. Health plans will still be required to cover recommended preventive services, including COVID-19 immunizations, without cost sharing, but this coverage requirement will be limited to in-network providers.

Prescription Drug Report Due by June 1

The deadline for health plans and health insurance issuers to submit their second prescription drug data collection (RxDC) report is June 1.

RxDC reports must be submitted through an online portal maintained by the Centers for Medicare and Medicaid Services. The agency’s RxDC website provides updated reporting instructions and other reporting resources. The first RxDC report was due by Dec. 27, 2022 (covering data for 2020 and 2021); however, federal agencies provided a submission grace period through Jan. 31, 2023. The second RxDC report is due by June 1, 2023, and must include data for 2022.

Health plans may use a third party — such as an issuer, third-party administrator or pharmacy benefit manager — to prepare and submit the RxDC report on their behalf.

To do this, a plan must enter into a written agreement with the third party to address this reporting responsibility. Health plans are allowed to submit RxDC reports on their own, but most employers will likely rely on third parties to prepare and submit the reports.

For more information about employee benefits, our services and products, contact HANYS Benefit Services by email or call 800.388.1963.

Popular posts from this blog

What is HR vendor management? Overview with scenarios

Vendor management can be a litigious environment where efficiency, transparency and risk mitigation are paramount. With the right advisor in your organization’s corner, you’ll feel more confident navigating vendors and managing their services, ensuring streamlined processes and strategic alignment.   In this blog post, we'll cover the basics: What vendor management in HR entails, why it's important, how it can transform businesses and some scenarios in a few business types. Level up your knowledge and find the right partners to thrive.  Understanding vendor management in HR  Vendor management in HR involves the systematic management of third-party suppliers who provide goods and services essential to HR operations. This includes managing contracts, ensuring compliance with service level agreements and optimizing vendor performance to align with a company's long-term business goals.  A robust vendor management strategy can provide organizations with a structured ...

Employee Benefits Offerings: What Perks Can You Add?

Employee benefits can play a crucial role in attracting and retaining top talent. Beyond compensation and bonuses, offering a variety of perks can significantly enhance employee satisfaction and productivity. But what should you include in your employee benefits offerings?   What are employee benefits?   Employee benefits encompass compensation, bonuses and various perks outside an employee's wage. By offering flexible employee benefits, you can improve employee productivity and loyalty while attracting and retaining talented candidates.   Personalized benefits examples   The type of benefits offered can vary by industry. We've compiled some of the most popular options to help you explore possible employee benefits strategies .  1. Social opportunities   Employee perks don't always have to be tied to a benefits package. Sometimes, the best way to engage your employees can be through social opportunities. Group activities can help im...

Section 125 – Cafeteria Plans Overview

A Section 125 plan, or cafeteria plan , allows employees to pay for certain benefits on a pre-tax basis. Employers use these plans to provide their employees with a choice between cash and certain qualified benefits without adverse tax consequences. Paying for benefits on a pre-tax basis reduces the employee’s taxable income and, therefore, reduces both the employee’s and the employer’s tax liability. To receive these tax advantages, a cafeteria plan must comply with the rules of Section 125 of the Internal Revenue Code and related IRS regulations. Under these rules, a Section 125 plan must have a written plan document and can only offer certain qualified benefits on a tax-favored basis. Once an employee makes a Section 125 plan election, they may not change that election until the next plan year, unless the employee experiences a permitted election change event. Also, for highly compensated employees to receive the tax advantages associated with a Section 125 plan, the plan must pass ...