Extension of Employee Benefit Timelines – Hurricane Relief

The Department of Labor (DOL) and the Department of Treasury (IRS) issued several notices extending time frames generally applicable under HIPAA, COBRA, and ERISA to provide relief to plan participants, beneficiaries, qualified beneficiaries and claimants as well as plan sponsors that may have been impacted by Hurricane Helene, Tropical Storm Helene or Hurricane Milton. In addition, the Department of Health and Human Services (HHS) encourages plan sponsors of non-federal governmental plans to follow the guidance. The notices provide relief similar to the extensions made available for the COVID-related National Emergency a few years ago (the “Outbreak Period”).

A news release including the agencies’ Joint Notice, EBSA Disaster Relief Notice 2024-01 and corresponding FAQs can be found here.

The Relief Period – Through May 1, 2025

For the period of time beginning with the first day of the incident (i.e., Hurricane Helene, Tropical Storm Helene or Hurricane Milton) through May 1, 2025 (the “Relief Period”), normally applicable time frames for certain requirements under HIPAA, COBRA and ERISA are disregarded.

The Relief Period start date varies slightly for different areas ranging between September 23 and October 5 depending upon which disaster impacted the area.

• For Florida disaster areas tied to Hurricane Helene, the Relief Period began September 23, 2024.
• For Georgia disaster areas tied to Hurricane Helene, the Relief Period began September 24, 2024.
• For North Carolina, South Carolina and Virginia disaster areas tied to Hurricane Helene or Tropical Storm Helene, the Relief Period began September 25, 2024.
• For Tennessee disaster areas tied to Tropical Storm Helene, the Relief Period began September 26, 2024.
• For Florida disaster areas tied to Hurricane Milton, the Relief Period began October 5, 2024.

Affected Individuals

The Relief Period applies to individuals “who resided, lived, or worked in one of the disaster areas at the time of the hurricane or tropical storm.” The Relief Period also applies to individuals “whose coverage was under an employee benefit plan that was directly affected.”

Employee benefit plans are directly affected if:

• the principal place of business of the employer that maintains the plan was in a disaster area;
• the principal place of business employing more than 50% of active plan participants was in the disaster area; or
• the office of the plan administrator or primary recordkeeper serving the plan, was in a disaster area.

“Disaster areas” for this purpose include the counties or tribal areas in Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia that have been or are later designated as disaster areas eligible for Individual Assistance by the Federal Emergency Management Agency (FEMA).

FEMA Designated Disaster Areas

• Hurricane Milton: https://www.fema.gov/disaster/4834/designated-areas
• Hurricane Helene – FL: https://www.fema.gov/disaster/4828/designated-areas
• Hurricane Helene – GA: https://www.fema.gov/disaster/4830/designated-areas
• Hurricane Helene – NC: https://www.fema.gov/disaster/4827/designated-areas
• Hurricane Helene – SC: https://www.fema.gov/disaster/4829/designated-areas
• Tropical Storm Helene – TN: https://www.fema.gov/disaster/4832/designated-areas
• Tropical Storm Helene – VA: https://www.fema.gov/disaster/4831/designated-areas

Note: Only counties highlighted in red on these maps qualify as disaster areas for purposes of these deadline extensions.

Affected Benefit Requirements

The Relief Period applies to the following requirements under HIPAA, COBRA and ERISA.

HIPAA	30 or 60-day deadline for requesting for HIPAA special enrollment rights Notice requirements for plan sponsors
COBRA	60-day deadline to elect COBRA 30 or 45-day due date for COBRA premium payments 60-day deadline to notify plan of a qualifying event or disability extension Notice requirements for plan sponsors
ERISA	Claim filing deadlines (including run-out periods for health FSAs and HRAs) Deadlines applicable to claims appeals and external reviews Notice requirements for plan sponsors Form 5500 (and Form M-1) filing requirements

Relief Period Examples

HIPAA Special Enrollment Rights
If an employee has a baby December 15, 2024, the employee could request enrollment for herself, her spouse, and the child (retroactive to December 15, 2024) up until May 31, 2025 (30 days after May 1, 2025). However, the employee would be responsible for any employee contributions for coverage back to December 15, 2024.

COBRA Election Period
If an employee experiences a loss of coverage triggered by a termination of employment on November 30, 2024, the employee and any other covered family members could elect COBRA (retroactive back to December 1, 2024) up until June 30, 2025 (60 days after May 1, 2025). However, COBRA participants would be responsible for any COBRA premiums back to December 1, 2024.

COBRA Premium Payment
For an existing COBRA participant that must make COBRA premium payments during the Relief Period, if the COBRA participant misses a payment deadline, the COBRA participant has up until May 31, 2025 (30 days after May 1, 2025) to make up any missed COBRA premium payments during the Relief Period.

Health FSA Run-Out Period
Employer’s health FSA plan runs January – December with a 90-day run-out period. Participants of the employer’s health FSA for January – December 2024 must be given until July 30, 2025 (90 days after May 1, 2025) to submit claims incurred during the 2024 plan year for reimbursement.

IMA will continue to monitor regulator guidance and offer meaningful, practical, timely information. This material should not be considered as a substitute for legal, tax and/or actuarial advice. Contact the appropriate professional counsel for such matters. These materials are not exhaustive and are subject to possible changes in applicable laws, rules, and regulations and their interpretations.

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