Proposal to Expand Electronic Delivery Options for Group Health Plans
- 2 days ago
- 3 min read
Updated: 3 hours ago
The U.S. Department of Labor (DOL) has issued a new proposed rule that would establish a new electronic delivery option for group health plan (GHP) administrators to furnish disclosures required under ERISA. The proposed rule, if finalized, would apply to GHPs on the first day of the first calendar year following publication of the final rule. The proposal aims to reduce the administrative burdens related to delivery of GHP disclosures and to improve participants’ ability to access and understand plan information. If finalized, the new rule would create an additional optional safe harbor, but it would not eliminate or modify the existing safe harbor methods for furnishing GHP disclosures. For now, plans should note that no immediate action is required and plans should continue using the current electronic delivery safe harbor or providing documents by mail or hand delivery.
ERISA Electronic Distribution Rules
ERISA requires that employers must distribute documents by using measures that are “reasonably calculated to ensure actual receipt of the material” and are “likely to result in full distribution.” While delivery of ERISA documents by U.S. mail and hand delivery will always satisfy this standard, many employers incorporate some type of electronic method of distribution such as use of email, a company intranet or benefits website and/or benefits administration online/internet system. It is increasingly common for employers to use various forms of internet-based delivery methods, and many operate without offering a process in place to honor opt-out elections.
Existing Safe Harbor Method for Electronic Delivery
Current electronic disclosure rules for GHPs exist under a DOL rule established in 2002 that provides a safe harbor for using electronic media to satisfy ERISA’s welfare plan delivery method requirements, including email, posting to a company website and other electronic media. Many plan sponsors follow this 2002 “wired at work” safe harbor that allows employers to distribute disclosures electronically to: (1) employees with work-related computer access; and (2) other plan participants and beneficiaries who consent to receive disclosures electronically. The 2002 safe harbor applies to ERISA disclosures such as summary plan descriptions (SPDs), summaries of material modifications (SMMs) and summary annual reports (SARs), as well as certain other GHP notices. The 2026 proposed rule would add an additional optional safe harbor method for electronic distributions for GHPs.
New Proposed Safe Harbor Method for Electronic Delivery
The new safe harbor framework proposes a “notice-and-access” model under which GHPs may notify individuals electronically that required documents are available online, while preserving the ability to request free paper copies or opt out of electronic delivery entirely. The new safe harbor generally would be available for a recipient entitled to plan disclosures for whom the plan administrator has an electronic address, such as an email address, internet-connected mobile phone number or employer-assigned electronic address. The plan would make the documents available on a website, benefits portal, mobile application or similar electronic repository and send the individual a Notice of Internet Availability (NOIA) identifying the documents and explaining the individual’s right to request paper copies or opt out of electronic delivery. This proposed “notice and access” model is similar to a separate, broader electronic disclosure safe harbor issued by the DOL in 2020 for retirement plans. However, unlike the 2020 retirement plan safe harbor, email delivery of documents is not available under this 2026 proposal, as many ERISA GHP disclosures contain sensitive information, including protected health information (PHI).
The DOL is seeking comments on the 2026 proposed rule through September 21st. If finalized, the rule could result in employers having even greater flexibility to further modernize disclosure practices and reduce reliance on paper delivery. Until the rule is finalized, plan administrators should continue to comply with the existing disclosure requirements.
We will provide updates as the rulemaking process develops. Should you have questions in the meantime, please contact your Conner Strong & Buckelew account representative toll-free at 1-877-861-3220. For a complete list of Legislative Updates issued by Conner Strong & Buckelew, visit our online Resource Center.
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