April 19, 2018
As we told you about previously, the U.S. Department of Labor’s expanded disability claims procedures went into effect as of April 1, 2018. These rules apply ERISA-governed disability plans and to benefits under any other ERISA plan if a disability determination is required to receive the benefit.
The new procedures make the disability claims procedures more like the expanded claims procedures that apply to health plans. For example, that disability claimants are required receive a clear explanation of why their claim was denied as well as their rights to appeal a denial of a benefit claim, and to review and respond to new information developed by the plan during the course of an appeal. The rule also requires that a claims adjudicator could not be hired, promoted, terminated, or compensated based on the likelihood that they will deny claims. More information is available here.
Takeaway
If employers have not already amended their plans (or received amendments from carriers or other providers) for the new rules, they should reach out to their carriers or other plan providers for revised language. Employers need to make sure to get any necessary plan amendments are in place and communicate this change to participants.
If you have any questions, please contact your HUB Advisor. View more compliance articles in our Compliance Directory.
NOTICE OF DISCLAIMER
The information herein is intended to be educational only and is based on information that is generally available. HUB International makes no representation or warranty as to its accuracy and is not obligated to update the information should it change in the future. The information is not intended to be legal or tax advice. Consult your attorney and/or professional advisor as to your organization’s specific circumstances and legal, tax or other requirements.