Department of Labor Update: Guidance Issued on the Duration of Certain Deadline Extensions, Including COBRA

On February 26, 2021, the Department of Labor (DOL) released further guidance, EBSA Disaster Relief Notice 2021-01. This notice clarifies the duration of the relief provided in the joint IRS/DOL notice issued in 2020, granting extensions for timelines applicable to COBRA and certain claims filing deadlines.

Notice 2021-01 confirms that timeframes subject to this relief will apply until the earlier of one (1) year from the date first eligible for the relief; or 60 days after the announced end of the National Emergency.

Flores actions in response to this Notice include:

COBRA

• Our proprietary system has been updated to resume terminating COBRA coverage due to non-payment for participants who are approaching their one year statutory limit.
• All COBRA Qualifying Event notices and invoices direct individuals to our website, www.flores247.com for the latest information about COVID related COBRA relief.
• The COBRA Extensions White Paper for Participants that is posted to our participant site has been updated in accordance with the DOL’s Disaster Relief Notice issued on February 26, 2021.

FSA & HRA

• Flores will begin closing out 2019 FSA and HRA plans as these plan years’ claims filing deadlines approach their one-year statutory limit. For example, plans that had an original claims filing deadline of 3/31/2020 have been extended with a final deadline of 3/31/2021.
• Claims filing deadline email notifications will be sent to impacted participants.
• Flores will continue to monitor and extend Health Care FSA and HRA claims filing deadlines in accordance with the DOL’s guidance to the earlier of one year from the plan’s original deadline date, or 60 days from the announced end of the National Emergency.

Additional background on earlier guidance and the actions we have taken thus far may be found here.

Thank you for your continued trust and support. Please contact your Business Development Partner or Dedicated Account Manager at (800) 532-3327 for specific questions regarding the plans we administer.