Deadline Approaching for Providing Summary of Benefits and Coverage (SBC) to Group Health Plan Participants and Beneficiaries
As discussed in our earlier article, the Patient Protection and Affordable Care Act (“PPACA”) requires that group health plans provide participants and beneficiaries with a Summary of Benefits and Coverage (“SBC”). The SBC is a concise and accurate summary describing the benefits and coverage offered by a group health plan in a more user-friendly manner than that historically provided by the summary plan description (“SPD”). This requirement takes effect on the first day of the first open enrollment period that begins on or after September 23, 2012. For those plans that do not have an open enrollment period, the requirement takes effect on the first day of the first plan year beginning on or after September 23, 2012.
The rules issued by the U.S. Departments of Labor, Health and Human Services, and the Treasury regulate both the content and the appearance of the SBC. These Departments have issued a sample and template SBC to assist group health insurance plans with the content and format requirements.
For more information about the Summary of Benefits and Coverage, please contact your Trust Fund counsel.
Author: Conchita Lozano
