The U.S. Department of Labor (DOL) has proposed a new rule that would allow employer-provided health plans to deliver mandatory disclosures electronically. The proposed rule would allow plan administrators subject to the Employee Retirement Income Security Act (ERISA) to furnish mandatory plan disclosures to participants electronically, such as via email or a web-based portal. Plan administrators would have the option to notify participants electronically that the disclosures are available online. The proposed rule aims to increase effectiveness and reduce costs and burdens on group health plans. The DOL titled the rule “Electronic Disclosure by Group Health Plans Under ERISA.”
Nonetheless, the proposed rule allows individuals who prefer paper copies of disclosures to opt out of electronic delivery. In that case, plans would have to provide those participants with paper copies of mandatory disclosures upon request. The proposed rule mirrors electronic delivery access already available for mandatory retirement plan disclosures. Still, it applies only to health plans, not other benefit plans, such as life insurance and disability coverage.
Under DOL’s 2002 safe harbor rule, which remains in effect, electronic delivery of notices is permissible only for employees who use a work computer as a central part of their daily work duties, as well as those who consent to electronic delivery.
If approved, the rule would become effective on January 1, 2027.
HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.
