Electronic Disclosure by Group Health Plans Under ERISA
Key claim: The Department of Labor proposes a new ERISA safe harbor allowing group health plan administrators to furnish required disclosures electronically via website notice, with paper-copy and full opt-out rights for participants, to improve disclosure effectiveness and reduce plan costs.
Abstract
(Proposed Rule · Labor Department, Employee Benefits Security Administration) This proposed rule sets forth a new, additional safe harbor for group health plan administrators to use electronic media (e.g., email or web portal) to furnish documents and information to participants and beneficiaries of plans subject to the Employee Retirement Income Security Act of 1974 (ERISA). This proposal, if finalized, would allow plan administrators who satisfy specified conditions to provide participants and beneficiaries with a notice that certain disclosures will be made available electronically on a website. Individuals who prefer to receive these disclosures on paper will be able to request paper copies and to opt out of electronic delivery entirely. The Department expects that the proposal, if finalized, would improve the effectiveness of the disclosures and significantly reduce the costs and burden to group health plans associated with furnishing many of the recurring disclosures.
Why this matters
For workers, the proposal changes the default channel for receiving ERISA-required group health plan notices from paper to electronic website posting, while retaining opt-out and paper-copy rights that determine whether participants actually see time-sensitive coverage information. For employers and plan administrators, it offers a cost-reducing compliance pathway parallel to the 2020 retirement-plan e-delivery safe harbor, but adds new notice, accessibility, and recordkeeping obligations. Status: proposed rule, subject to public comment before finalization.