DOL Issues Post-Hobby Lobby Guidance for Closely Held For-Profits Making Changes in Contraception Coverage

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The Department of Labor (DOL) issued guidance for closely held for-profit corporations that wish to exclude coverage of any contraceptives under their health plans in the wake of the Burwell v. Hobby Lobby Supreme Court decision issued in June (the decision is covered in much greater detail in our Supreme Court review). Not surprisingly, any changes made by the plan sponsor in the plan’s benefit coverage, including for contraception coverage, must comply with ERISA’s disclosure requirements. The plan sponsor must issue an updated summary plan description (SPD) or summary of material modification (SMM) reflecting the coverage changes. In addition, consistent with ERISA’s requirements for disclosure of material benefit reductions, the SPD or SMM reflecting the change must be provided to beneficiaries no later than 60 days after the changes have been adopted.

In addition, if any changes need to be made to be plan’s Summary of Benefits and Coverage (SBC), which is provided pursuant to the ACA, an updated SBC must be distributed no later than 60 days prior to the effective date of the coverage change.

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DOL

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Franczek Radelet P.C. | Attorney Advertising

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