Temporary Enforcement Policy for Health Plan Disclosures
The Department of Labor’s Employee Benefits Security Administration (EBSA) released Field Assistance Bulletin (FAB) 2021-03 announcing a temporary enforcement policy regarding group health plan service provider disclosures under ERISA Sec. 408(b)(2)(B). In accordance with the Consolidated Appropriations Act, 2021, as of December 27, 2021, certain service providers to group health plans are required to disclose specified information to a responsible plan fiduciary about the direct and indirect compensation that the service provider expects to receive in connection with its services to the plan.
FAB 2021-03 states, pending further guidance, EBSA will not treat a covered service provider under ERISA Sec. 408(b)(2)(B) as having failed to make required disclosures to a responsible plan fiduciary as long as the person made disclosures in accordance with a good faith, reasonable interpretation of ERISA Sec. 408(b)(2)(B). To assist covered service providers, the FAB provides further guidance on what is good faith and reasonable interpretations in a series of questions and answers.
This guidance will be further analyzed, and additional details provided as warranted.