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Showing posts from May, 2013

From SPDs to SBCs

Some US employers are betting on a great deal of the Health Care Reform Act being repealed when (not 'if' -- at least to these bettors) the Democrats are swept out of office in the impending national elections.So no need to make a lot of changes; after all, a good deal of it will be discarded anyway.Whether or not this is a prudent strategy remains to be seen. In the meantime, provision after provision of the Act is getting phased in while the repeal zealots continue to hold their breathe.

We note that it has been since September, 2012 that the Act has required employers offering health insurance to provide a Summary of Benefits and Coverage ("SBC") to all employees. Not to be confused with “SPDs” (Summary Plan Descriptions), SBC’s come with specific content and formatting rules. While SPDs must be "understandable" and "plain-spoken" as mandated by ERISA, SBCs must be “short” and in “plain language.”This is a new acronym basically re-expressing …