DOL Proposes Rule to Shift Employer Health Plans to Digital Delivery, SHRM

SHRM quoted partner Sage Fattahian in an article about the US Department of Labor’s (DOL’s) proposed rule establishing a new electronic delivery safe harbor for group health plans subject to the Employee Retirement Income Security Act (ERISA).

The article examines how the proposed rule would allow plan sponsors to provide required health plan disclosures electronically while reducing printing and mailing costs. Sage noted that the proposal is “welcome news for many plan sponsors that have been seeking additional flexibility as employee communications increasingly occur in a digital environment.” She explained that the rule better aligns ERISA disclosure requirements with current communication practices while creating implementation considerations for employers, including establishing compliant electronic delivery procedures and maintaining participants’ electronic contact information. Although these operational changes may require some up-front planning, Sage observed that, “for most plan sponsors, these implementation steps should be manageable and likely will not present a significant administrative burden.”

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