EBSA Disaster Relief Notice 2021-01

Guidance on Outbreak Period and Health FSA Claims Period

Previous Notice:

• IRS/DOL jointly issued Notice 2020-01 in April of 2020.
• The Joint Notice prescribed a period that plans were required to disregard when determining due dates for certain enumerated actions.
• HIPAA special enrollment
• COBRA elections, premium payment, QB notices, and even election notices
• Claims and appeals for all welfare and retirement plans subject to ERISA
• External Review requests for non-grandfathered health plans subject to ACA
• This period of disregard is called the “Outbreak Period”.
• The Outbreak Period began March 1^st and ends 60 days after the end of the National Emergency.
• There was a 1 year limitation.

Current Situation:

• The National Emergency has yet to be declared over.
• It is one year from March 1, 2020.

DOL/IRS Updated Guidance

• Instead of applying the 1 year limitation to the Outbreak Period itself they have applied the one year period to an individual’s specific time period.
• The 1 year period is applicable from the earlier date the individual was first eligible for relief or 60 days after the announced end of the National Emergency.
• COBRA Election:
  • Identify the original due date. The COBRA election period would have otherwise ended May 31, 2020.
  • Add one year. The Plan can now require an election by May 31, 2021.
• FSA Claims Period:
  • Health FSA run out period for 2019 would have otherwise ended March 31, 2020.
  • Plan can require a submission of 2019 claims by March 31, 2021.
• g payroll taxes on Form 941.