Employee Benefits-SBCs Are Becoming Due

The summary of benefits and coverage, which we have been calling an “SBC”, and which group health care plans have to provide to participants and beneficiaries, is becoming (or may already be) due. For participants and beneficiaries who enroll or re-enroll in the plan through an open enrollment period (including late enrollees and re-enrollees), the SBC must initially be provided beginning on the first day of the first open enrollment period that begins on or after September 23, 2012. For participants and beneficiaries who enroll in coverage other than through an open enrollment period (including individuals who are newly eligible for coverage and special enrollees), the SBC must initially be provided beginning on the first day of the first plan year that begins on or after September 23, 2012. The penalties for not providing a compliant SBC are severe.

To help those responsible for furnishing the SBCs, I have prepared an article on the SBC requirements. Feel free to contact me through the blog if you would like the article or if you have any questions-Stanley