Hurricane Relief Creates Need for Extension of Employee Benefit Timelines
The U.S. Department of Labor (DOL), the Department of the Treasury, and the Internal Revenue Service (IRS) recently issued joint guidance to provide relief to plan participants and beneficiaries of employee benefit plans affected by either Hurricane Helene, Tropical Storm Helene, or Hurricane Milton. Resultingly, in an effort to alleviate the burden of complying with certain deadlines related to benefits administration for employer-sponsored coverage as it pertains to ERISA, HIPAA, and COBRA, some timeframes for participants and beneficiaries to exercise their rights to healthcare coverage (and the continuation of healthcare coverage under COBRA) have been extended, thus giving plan participants and beneficiaries affected by these natural disasters more opportunity to file and complete claims, appeal any denied claims, or elect COBRA. You may recall that similar relief was issued in the midst of the COVID-19 pandemic as well.
The Department of Health and Human Services (HHS) has encouraged all non-Federal governmental plan sponsors and health insurance issues offering group or individual coverage to comply by extending the applicable timeframes. Numerous individuals who were directly affected by the aforementioned natural disasters will qualify for what is being referred to as a “Relief Period”.
Who is considered an “affected individual” and what is a “relief period”?
For purposes of the Relief Period*, an affected individual is one “who resided, lived, or worked in one of the disaster areas” when either Hurricane Helene, Tropical Storm Helene, or Hurricane Milton happened or “whose coverage was under an employee benefit plan that was directly affected”.
*The Relief Period refers to the time period which began on the first day of the incident through May 1, 2025. If affected by one of the hurricanes, the Relief Period timeframe would be linked directly to the occurrence of the hurricane itself. The same would apply to Tropical Storm Helene. During the entirety of the Relief Period, the timeframes that would typically be applied to ERISA, HIPAA, and COBRA will be disregarded.
Because all of these incidents happened at different times, the Relief Period will vary slightly to correspond with the location of the disaster area and the incident itself. The timing is as follows:
- For Florida disaster areas affected by Hurricane Helene, the Relief Period began on September 23, 2024; for Florida disaster areas affected by Hurricane Milton, the Relief Period began on October 5, 2024
- For Georgia disaster areas affected by Hurricane Helene, the Relief Period began on September 24, 2024
- For North Carolina, South Carolina, and Virginia disaster areas affected by Hurricane Milton, the Relief Period began on September 25, 2024
- For Tennessee disaster areas affected by Tropical Storm Helene, the Relief Period began on September 26, 2024
As noted above, the Relief Period for all affected disaster areas will conclude on May 1, 2025 regardless of start date. Disaster areas are classified as the counties or tribal areas located in Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia that have been or are later designated as disaster areas eligible for Individual Assistance by the Federal Emergency Management Agency (FEMA).
In order for an employee benefit plan to be considered “directly affected” by Hurricane Helene, Tropical Storm Helene, or Hurricane Milton one of the following must be accurate:
- the principal place of the employer’s business that maintains the plan must have been located in one of the disaster areas at the time of the hurricane or tropical storm;
- the principal place of the employer’s business which employs more than 50% of active plan participants must have been located in one of the disaster areas at the time of the hurricane or tropical storm; or
- the office of the plan administrator or primary recordkeeper serving the plan must have been located in one of the disaster areas at the time of the hurricane or tropical storm.
FEMA Designated Disaster Areas
Hurricane Milton: https://www.fema.gov/disaster/4834/designated-areas
Hurricane Helene - FL: https://www.fema.gov/disaster/4828/designated-areas
Hurricane Helene - GA: https://www.fema.gov/disaster/4830/designated-areas
Hurricane Helene - NC: https://www.fema.gov/disaster/4827/designated-areas
Hurricane Helene - SC: https://www.fema.gov/disaster/4829/designated-areas
Tropical Storm Helene - TN: https://www.fema.gov/disaster/4832/designated-areas
Tropical Storm Helene - VA: https://www.fema.gov/disaster/4831/designated-areas
Note: Only counties highlighted in red on these maps qualify as disaster areas for purposes of these deadline extensions.
The Relief Period applies to the following requirements under HIPAA, COBRA, and ERISA:
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COBRA |
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ERISA |
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For certain notices required to be distributed by plan sponsors upon initial eligibility (or enrollment), during open enrollment, and at other times, the plan sponsor will be in compliance if the plan acts in good faith and furnishes such notices as soon as administratively practicable under the circumstances. Good faith acts include use of electronic alternative means of communicating with those the plan sponsor reasonably believes have access to electronic means of communication (e.g., email, text messages, and websites).
Relief Period Examples
HIPAA Special Enrollment Rights
If an employee has a baby December 15, 2024, the employee could request enrollment for herself, her spouse, and the child (retroactive to December 15, 2024) up until May 31, 2025 (30 days after May 1, 2025). However, the employee would be responsible for any employee contributions for coverage back to December 15, 2024.
COBRA Election Period
If an employee experiences a loss of coverage triggered by a termination of employment on November 30, 2024, the employee and any other covered family members could elect COBRA (retroactive back to December 1, 2024) up until June 30, 2025 (60 days after May 1, 2025). However, COBRA participants would be responsible for any COBRA premiums back to December 1, 2024.
COBRA Premium Payment
For an existing COBRA participant that must make COBRA premium payments during the Relief Period, if the COBRA participant misses a payment deadline, the COBRA participant has up until May 31, 2025 (30 days after May 1, 2025) to make up any missed COBRA premium payments during the Relief Period.
Health FSA Run-Out Period
Employer’s health FSA plan runs January – December with a 90-day run-out period. Participants of the employer’s health FSA for January – December 2024 must be given until July 30, 2025 (90 days after May 1, 2025) to submit claims incurred during the 2024 plan year for reimbursement.
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