Employers offering an ICHRA are typically required to provide written notice to each participant at least 90 calendar days before the beginning of each plan year. Due to Covid-19 and during the national emergency the timeframe to provide the required notice has been adjusted. Under EBSA Disaster Relief Notice 2020-01, the ICHRA notice may be furnished as soon as administratively possible under the circumstances.
Employers are encouraged to make a good faith effort to provide the ICHRA notice far enough in advance so the eligible employees will have sufficient time to read and understand the notice, make an informed decision whether or not to enroll in the ICHRA, and exercise their special enrollment right to individual health insurance coverage so that the coverage would start no later than the first day of the ICHRA plan year. Additional information is provided in the Department of Labor’s FAQs About Families First Coronavirus Response Act and Coronavirus Aid, Relief, and Economic Security Act Implementation Part 43 (June 23, 2020).
The following information should be included in the notice:
- Dollar amount of the ICHRA offer.
- Date that coverage under the HRA may begin.
- Whether the offer extends to dependents.
- Contact information, including a phone number, of a resource participants may contact in order to receive additional information regarding the ICHRA.
- Statement of availability of a Special Enrollment Period (SEP) to enroll in or change individual health insurance coverage, for the participant and any dependents who newly gain access to the ICHRA and are not already covered by the ICHRA.
Employers offering an ICHRA may use the model notice provided by the Departments of the Treasury, Labor, and Health and Human Services to satisfy the notice requirement. For additional details, go to: https://www.cms.gov/files/document/hra-model-noticepdf.