Is your Summary Plan Description up-to-date?
August 15, 2014
As you go through all the steps needed to set up a new Affordable Care Act (ACA) compliant health plan, don’t forget about the need for an ERISA required Summary Plan Description (SPD). When you choose to have your health plan sponsored by SBAM, you’ll receive a new SPD from us for free.
With the ACA in place, most, if not all, group health plans will be replaced in order to meet certain legal requirements such as providing essential health benefits and following established limits on cost-sharing (like deductibles, copayments, and out-of-pocket maximum amounts). This means that at the time of your health plan renewal, you will need an updated SPD to distribute to your employees.
Nearly every employer, regardless of their size, is subject to ERISA if they offer an employer-provided group benefit plan. The only exempt employers are churches and government entities. ERISA requires companies to distribute a written plan document and SPD to all plan participants – including spouses and COBRA enrollees. Remember, this must be done in a timely to stay in compliance.
Providing a free SPD is just one way SBAM helps your company save time and money. Please contact Kara Wise, our SPD specialist, at (800) 362-5461 ext. 217 / firstname.lastname@example.org for details on our SPDs or any other SBAM product or service.