|New Summary of Benefits and Coverage Template for 2014
Employers responsible for distributing a summary of benefits and coverage (SBC) to employees in connection with group health plan coverage will need to include additional language to satisfy new requirements under Health Care Reform becoming effective in 2014. An updated SBC template, which includes the new language, is now available for SBCs provided with respect to coverage beginning on or after January 1, 2014 and before January 1, 2015.
SBC Notice Requirements
New Language Required for 2014
|The updated SBC template includes additional language indicating whether the plan provides “minimum essential coverage” (the type of coverage an individual needs to satisfy the individual responsibility requirement), and whether the plan meets the “minimum value” standard under Health Care Reform (meaning the plan pays for at least 60% of covered health care expenses).
FAQs issued simultaneously provide some relief for plans already working on preparing SBCs for 2014, where adding the new information to the template would present an administrative burden. To the extent a plan is unable to modify the SBC template for coverage beginning on or after January 1, 2014 and before January 1, 2015, a plan may use the previously authorized template, so long as the SBC is furnished with a cover letter or similar disclosure stating whether the plan does or does not provide “minimum essential coverage” and “minimum value.”