Hurricane Victims Granted Extensions Under Certain Benefit Plans

Several federal agencies in a joint notice announced extensions to various time frames for participants, beneficiaries, and qualified beneficiaries of certain group health plans, disability and other welfare plans, and pension plans in response to recent major storms. (FR 2024-26014, 11/7/2024)

The relief was issued November 7 by the Employee Benefits Security Administration, the Department of Labor, and the Treasury Department and IRS under Section 518 of the Employee Retirement Income Security Act of 1974 (ERISA) and Code Sec. 7508A(b). It is targeted to individuals affected by Hurricanes Helene and Milton, as well as Tropical Storm Helene.

Per the notice, the agencies determined that relief is immediately needed to preserve and protect benefits provided under affected plans relied upon by participants, beneficiaries, qualified beneficiaries, and claimants. The Department of Health and Human Services (HHS) advised the agencies to extend time frames under titles XXII and XXVII of the Public Health Service Act (PHS Act) applicable to plan sponsors of non-federal governmental plans and health insurance issuers offering group or individual health insurance.

Specifically, the relief applies to specified special enrollment periods; Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) continuation coverage; procedures for benefit claim initial dispositions and appeals of adverse benefit determinations to named fiduciaries; and time frames for external review processes.

For those located in Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia, extensions apply to the following relief periods.

• The 30- or 60-day period to request special enrollment under ERISA Section 701(f) and Code Sec. 9801(f).
• The 60-day election period for COBRA continuation coverage under ERISA Section 605 and Code Sec. 4980B(f)(5).
• The date for making COBRA premium payments pursuant to ERISA Section 602(2)(C) and (3) and Code Sec. 4980B(f)(2)(B)(iii) and (C).
• The date for individuals to notify the plan of a qualifying event or determination of disability under ERISA Section 606(a)(3) and Code Sec. 4980B(f)(6)(C).
• The date within which individuals may file a benefit claim under the plan’s claims procedure.
• The date within which claimants may file an appeal of an adverse benefit determination under the plan’s claims procedure.
• The date within which claimants may file a request for an external review after receipt of an adverse benefit determination or final internal adverse benefit determination.
• The date within which a claimant may file information to perfect a request for external review upon a finding that the request was not complete.

For group health plans subject to ERISA or the Code, the relevant relief period is also disregarded when determining the date for providing a COBRA election notice under ERISA Section 606(c) and Code Sec. 4980B(f)(6)(D).