Update on LBS COVID-19 Tolling Periods Administration

On April 28, 2020, the Departments of Labor and Treasury jointly announced regulatory changes due to the impact of the COVID-19 (Coronavirus) pandemic. These regulations were meant to provide relief for members and plan administrators and ensure access to active health benefits despite any hardship in paying monthly COBRA premiums. Further clarification of the regulation was announced early in 2021.

While the national emergency has been extended through a third year, Lifetime Benefit Solutions has decided to shift how it will administer the regulation from a

short-term to a longer-term focus. With an ending to the national emergency unclear, our administration of the regulation needs to evolve from when the regulation was first announced two years ago to best service our clients, members, and partners.

Beginning July 1, 2022, LBS will resume following all standard COBRA regulation timeframes, subject to compliance with federal regulations. Termination of COBRA coverage for non-payment of premiums will resume. Any current COBRA Qualified Beneficiaries (QBs) at risk of termination due to non-payment, will receive notice that they have 30 days to make full premium payment by July 1, 2022, or face termination. LBS will make every effort to retroactively terminate QBs with their respective carriers back to their last paid date. In the event carriers will not retroactively terminate coverage, LBS will attempt to recoup any member premiums through a collection effort.

Coverage for COBRA QB’s, will be reinstated if all outstanding premiums are received within 12 months and the following standard 30-day grace period of the Paid-to-Date (PTD) (or within 60 days after the end of the national emergency, whichever is sooner).  All reinstatements depend on carrier approval.

Since the national emergency has been extended, LBS  will make every attempt to ensure any QB’s with a hardship maintain access to active health benefits. If a QB is unable to make their monthly premium payment, we will request they reach out to us, and we will attempt to assist them with extending the tolling period on a case-by-case basis. 

Please contact your Client Service Consultant with any further questions.