In line with the COVID-19 pandemic becoming endemic and moving into its next phase, on January 30, 2023 the White House Office of Management and Budget announced its plan to extend both the COVID-19 Public Health Emergency and COVID-19 National Emergency declarations until May 11, 2023, and then terminate both declarations on that date. This article focuses on the upcoming impacts this announcement will have on employers sponsoring group health plans.
We just reported on the most recent extension of the COVID-19 Public Health Emergency (PHE) on January 11, 2023, which was scheduled to expire on April 11, 2023. This was the 12th renewal of the COVID-19 PHE determination, initially declared by the HHS Secretary on January 31, 2020.
Since the U.S. Department of Health and Human Services (HHS) previously confirmed they will provide a 60-day notice before any possible termination of the PHE determination, this most recent announcement comes before that February 11, 2023 deadline (60 days before April 11, 2023) and extends the COVID-19 PHE for an additional month until May 11, 2023.
The planned end of the COVID-19 PHE on May 11, 2023 will result in the termination of the following COVID-19 PHE benefit plan flexibilities and enhancements:
The COVID-19 National Emergency, first declared on March 1, 2020 and extended again on February 24, 2021 and on February 18, 2022, impacts various group health plan-related deadlines, including certain COBRA-related deadlines. Click here for a prior Risk Strategies article highlighting these deadlines.
National Emergency declarations generally last for one year or 60 days from the announced end of the National Emergency, if earlier.
Now that the White House announced its intention to terminate the National Emergency declaration on May 11, 2023 as well, the following COBRA-related and other plan deadline extensions are scheduled to expire on July 10, 2023 (60 days after May 11, 2023) and revert back to their standard statutory/regulatory deadlines:
Finally, telehealth relief for HSA-compatible high-deductible health plans, originally passed under the CARES Act of 2020 in response to the COVID-19 pandemic, was recently extended for two more years under federal legislation passed at the end of 2022. Click here to learn more.
In the immediate short term, employers sponsoring group health plans should continue to comply with the required COVID-19 PHE and National Emergency benefit plan changes and extensions, as applicable, outlined above.
However, now that the White House has provided a planned end date of May 11, 2023 for both COVID-19 Emergency declarations, employers are advised to connect with their group health carriers, third-party administrators, and/or pharmacy benefit managers as well as their COBRA vendors to begin preparations for winding down these temporary plan changes and deadline extensions. These preparations should include clear and robust communications to employees well before May 11th on what plan changes to expect going forward. Further, COBRA enrollment and payment tracking systems should be up-to-date. This is particularly important for employers who must begin enforcing standard COBRA deadlines once again, especially since the COBRA election/payment period end date will not be the same for all individuals.
Risk Strategies is following these developments closely and will provide guidance updates as they become available. Reach out to your Risk Strategies representative with any questions or contact us directly at benefits@risk-strategies.com.