The U.S. National Emergency in response to the COVID19 pandemic ended Monday, April 10th, 2023, nearly 5 weeks earlier than it was originally set to expire. This change has left many wondering what the impact is to employee benefits; however, the Department of Labor (DOL) and IRS have informally indicated that there is no change to the Outbreak Period set forth in FAQs by various departments on March 29, 2023. This means the Outbreak Period is set to end on July 10, 2023.

We’ve compiled key information and resources below to help you navigate this transition.

Per the FAQ examples provided by the DOL, Health and Human Services, and the Treasury Department, the Outbreak Period continues for 60 days after the announced end of the COVID-19 National Emergency or another date announced by the DOL, the Treasury Department, and the IRS. The extensions under the emergency relief for timeframes that began during the National Emergency would no longer apply as of the end of the Outbreak Period.

Based on the information informally recognized in the FAQ, the Outbreak Period will end July 10, 2023, unless otherwise announced.

The following are examples of how the end of the National Emergency will affect the deadlines related to COBRA:

Electing COBRA

• If a participant experiences a qualifying event within a certain period of time and is provided a COBRA election notice before the end of the outbreak period, the individual’s 60-day period to elect COBRA begins to run after July 10, 2023 (making the deadline September 8, 2023)—regardless of whether the qualifying event, loss of coverage, or provision of the COBRA notice occurs before or after the end of the National Emergency.
• If the qualifying event occurs after the end of the outbreak period, there is no extension, and the 60-day period is measured from the date the COBRA election notice is provided.

Paying COBRA Premiums

• An employee has a qualifying event and receives a COBRA election notice on October 1,2022. The employee elects COBRA continuation coverage on October 15, 2022, that is retroactive to October 1, 2022. The initial COBRA payment, covering premiums from October 2022 through July 2023, must be made no later than 45 days after the end of the outbreak period (i.e., August 24, 2023), with subsequent payments due according to the regular COBRA timeline (the first day of each month of coverage, with a 30-day grace period).
• On 7/10/2023, any subsequent late payments will not be accepted outside of the grace period.

Disability Notification

• Standard rules will apply as to a COBRA extension due to disability per your COBRA Specific Rights Notice.

Example 1 (Electing COBRA) Facts: Individual A works for Employer X and participates in Employer X’s group health plan. Individual A experiences a qualifying event for COBRA purposes and loses coverage on April 1, 2023. Individual A is eligible to elect COBRA coverage under Employer X’s plan and is provided a COBRA election notice on May 1, 2023. What is the deadline for Individual A to elect COBRA? Conclusion: The last day of Individual A’s COBRA election period is 60 days after July 10, 2023 (the end of the Outbreak Period), which is September 8, 2023.

Example 2 (Electing COBRA) Facts: Same facts as Example 1, except the qualifying event and loss of coverage occur on May 12, 2023, and Individual A is eligible to elect COBRA coverage under Employer X’s plan and is provided a COBRA election notice on May 15, 2023. What is the deadline for Individual A to elect COBRA? Conclusion: Because the qualifying event occurred on May 12, 2023, after the end of the COVID-19 National Emergency but during the Outbreak Period, the extensions under the emergency relief notices still apply. The last day of Individual A’s COBRA election period is 60 days after July 10, 2023 (the end of the Outbreak Period), which is September 8, 2023.

Example 3 (Electing COBRA) Facts: Same facts as Example 1, except the qualifying event and loss of coverage occur on July 12, 2023, and Individual A is eligible to elect COBRA coverage under Employer X’s plan and is provided a COBRA election notice on July 15, 2023. What is the deadline for Individual A to elect COBRA? Conclusion: Because the qualifying event occurred on July 12, 2023, after the end of both the COVID-19 National Emergency and the Outbreak Period, the extensions under the emergency relief notices do not apply. The last day of Individual A’s COBRA election period is 60 days after July 15, 2023, which is September 13, 2023. 11

Example 4 (Paying COBRA Premiums) Facts: Individual B participates in Employer Y’s group health plan. Individual B has a qualifying event and receives a COBRA election notice on October 1, 2022. Individual B elects COBRA continuation coverage on October 15, 2022, retroactive to October 1, 2022. When must Individual B make the initial COBRA premium payment and subsequent monthly COBRA premium payments? Conclusion: Individual B has until 45 days after July 10, 2023 (the end of the Outbreak Period), which is August 24, 2023, to make the initial COBRA premium payment. The initial COBRA premium payment would include the monthly premium payments for October 2022 through July 2023. The premium payment for August 2023 must be paid by August 30, 2023 (the last day of the 30-day grace period for the August 2023 premium payment). Subsequent monthly COBRA premium payments would be due on the first of each month, subject to a 30-day grace period.

COBRA Election Outbreak Period:

• Qualifying Event and loss of coverage date: 4/1/23
• COBRA SRN Date: 5/1/2023
• “Normal” time period for making election: 60 days
• Outbreak End (7/10/2023) + 60 days = 9/8/2023

COBRA Election Outbreak Period, after the end of the National Emergency but before end of Outbreak Period:

• Qualifying Event and loss of coverage date: 5/12/2023
• COBRA SRN Date: 5/15/2023
• “Normal” time period for making election: 60 days
• Outbreak End (7/10/2023) + 60 days = 9/8/2023

COBRA Election Period, after the end of the National Emergency and Outbreak Period:

• Qualifying Event and loss of coverage date: 7/12/2023
• COBRA SRN Date: 7/15/2023
• “Normal” Elect by Date (60 days): 9/13/2023

Initial Payment Outbreak Period:

• Qualifying Event date: 10/1/2022
• COBRA SRN Date: 10/1/2022
• Participant Elected: 10/15/2022
• “Normal” time period for making the initial payment: 45 days
• Outbreak End (7/10/2023) + 45 days = 8/24/2023
• Required Premiums: October 2022 through July 2023
• August 2023 would be due by the normal August subsequent grace period

For additional information, please take a look at Frequently Asked Questions (FAQ) Part 58 that the agencies jointly released on March 29, 2023.

Have additional questions? Please contact CORBA@plansource.com or your former employer for more information.