Market News
Agencies Issue New FAQ on Health Reform’s SBC Requirement
November 23, 2011
When the proposed SBC regulations were released originally in August 2011, the regulators identified at that time that changes would be required. The DOL, HHS and IRS have jointly issued a new FAQ (Part VII) that addresses health care reform’s summary of benefits and coverage (SBC). The new FAQ released on November 17, 2011, seems to confirm that the final regulations may be significantly different from the proposals and it also suggests that there may be relief as to the applicability date as well. While it is advisable that employers become familiar with this new SBC requirement, relying too closely on current proposals for the preparation of this new benefit summary may not be the best use of time and resources.
Here is a highlight of the new FAQ:
- SBC Applicability Date. Q/A-1 asks whether a plan should move ahead in preparing for SBC compliance based on the currently proposed rules and templates, noting that changes made by final regulations, once issued, would impose additional implementation costs. In response, the agencies note that they have received many comments on the SBC proposals and intend to issue, as soon as possible, final regulations that take into account the comments. The agencies also add that, until final regulations are issued and applicable, plans and insurers are not required to comply. This FAQ goes on to indicate that the agencies anticipate that final regulations, once issued, will include an applicability date that gives plans and insurers sufficient time to comply.
