Watch for 2022 Summary of Benefits and Coverage Documents
Starting September 10, 2021, cooperatives will receive a Message Center notification when summary of benefits and coverage (SBC) documents are available on the Employee Benefits website. You must distribute SBCs either with your annual enrollment materials or by November 1, 2021 (whichever is earlier).
The SBC is a required disclosure that helps participants compare and select group benefit plan coverage. It describes plan exclusions and cost-sharing, gives examples of certain covered services, and includes a glossary of frequently used health insurance terms. Although some examples or terms may not apply to your co-op’s plan, by law they must be included in the SBC, which cannot be modified.
You will receive a 2022 SBC for:
- All NRECA medical plans renewed for January 2022
- Stand-alone well-being programs (update the highlighted fields before distribution)
- NRECA dental and vision plans, if the co-op pays 100% of the premium for employees (SBCs aren’t required for the NRECA VSP Vision Plan)
SBCs are delivered in PDF format. Be sure to download a copy of Adobe Acrobat Reader if you do not already have it.
For non-excepted health flexible spending accounts and health reimbursement arrangements, model SBC notices are posted online.
- Health flexible spending accounts (FSA), except when your co-op does not contribute to the FSA, provides a dollar-for-dollar match, or contributes no more than $500
- Health reimbursement arrangements
Before distribution, co-ops that offer these plans must download the sample SBC and update the highlighted sections to reflect your plan’s provisions. The models are only samples; please review them with your legal counsel before use.
Timing, distribution, and acknowledgement
By November 1 (or with your annual enrollment materials, if earlier), distribute SBCs to all individuals eligible for the group plans that your co-op will offer during 2022. Eligible individuals include employees, retirees, directors, your retained attorney, surviving dependents, COBRA plan participants, and:
- new enrollees at the time of first enrollment
- individuals with HIPAA special enrollments, and
- employees who request a copy (within seven business days).
For complete information about your SBCs, including which plans receive them, when to distribute them, and electronic distribution guidelines, review the Summary of Benefits and Coverage (SBC) page in the BA Guide on the Employee Benefits website. There you’ll also find a list of frequently asked questions about the content and format of the SBC. Information about temporary electronic distribution methods that your co-op may be able to follow if your business operations have been negatively impacted by the pandemic is posted on the COVID-19 Benefit Plan Timeline Extension page.
Acknowledgement is the important final step in the distribution process. Fill out the acknowledgment form on the Employee Benefits website by November 1. Follow the link in the original SBC Message Center notification or go directly to the form on the Group Plan Documents page. You can acknowledge distributing SBCs for multiple plans in one step.
Upcoming issues of NRECA Employee Benefits Weekly will provide information and reminders to help you distribute your SBCs. If you have questions about SBCs, contact the benefits compliance team at 866.673.2299, option 7, or group.compliance@nreca.coop.