Nearly 25 years ago, the Department of Labor (DOL) adopted a rule allowing group health plan sponsors to issue plan-related notices and documents electronically under a safe harbor provision.
Nearly 25 years ago, the Department of Labor (DOL) adopted a rule allowing group health plan sponsors to issue plan-related notices and documents electronically under a safe harbor provision.
Under the current rule employers may electronically deliver documents to employees who have work-related access to company resources as part of their job duties (i.e. "wired-at-work" employees). Those without work-related digital access may receive documents electronically by providing affirmative consent, and employers must honor requests to withdraw that consent and receive paper copies instead.
A new proposed DOL rule unveiled in late July mirrors a 2020 safe harbor adopted for pension plan communications. If finalized, health plan sponsors will have the option to post ERISA Title 1 disclosure documents to a secure website or other electronic repository that satisfies the rule’s accessibility, searchability, retention, and confidentiality requirements.
Plan sponsors also would need to establish procedures for providing required notices of internet availability, issuing any required initial notices, maintaining and monitoring participants’ electronic addresses, addressing undeliverable notices, and honoring participants’ rights to request paper copies or opt out of electronic delivery altogether.
The DOL’s compliance setup requirements could outweigh the savings and administrative benefits for small employers. Large employers with hundreds of participants, frequent required notices, and existing electronic benefits infrastructure have more to gain. If adopted, the DOL expects health plans will save $3.9 billion over 10 years on printing and distribution costs while giving participants and beneficiaries easier, more reliable access to their health plan information.
Comments to the DOL are due by September 21, 2026. Bukaty Companies will continue to monitor developments and provide updates as more information is available.