A diverse coalition of employers, health plans, business groups, labor organizations, and environmental advocates, led by The ERISA Industry Committee, rallied behind the Department of Labor (DOL)’s default electronic delivery (e-delivery) proposed rule for ERISA group health plan disclosures.
In public comments, stakeholders broadly championed the rule’s focus on modernizing outdated disclosure requirements, improving workers’ access to benefits information and reducing administrative costs — while preserving the option for paper disclosures for those who want or need it.
Stakeholders also underscored the strong consumer support for e-delivery and the fact that current paper-first requirements no longer reflect how workers access and manage their benefits. A recent ERIC/Ipsos poll of ERISA health plan enrollees found that:
- More than 9 in 10 employees (91%) most often access their benefits information electronically.
- Nearly 8 in 10 employees (78%) prefer to switch to e-delivery as a default, with the option to continue receiving paper at any time.
Many organizations also encouraged DOL to expand the final rule to all ERISA-covered welfare plans, advocating that a consistent approach across health, life, disability, and other benefits would provide a more seamless, predictable and efficient experience for workers and employers. A recent analysis of the cost savings associated with extending e-delivery to both health and welfare plan disclosures estimated the potential savings at $19.5 billion over 10 years.
Key Highlights:
“Default e-delivery would also give participants and beneficiaries more timely access to and control over their health care information, empowering workers and families to make informed health care decisions while reducing unnecessary costs and waste associated with paper-based communications.”
“The Chamber urges the Department to expand the scope of this safe harbor to cover all ERISA welfare benefit plans, including plans providing life insurance, disability, legal services, and other non-health benefits… The Chamber encourages the Department to adopt this expansion, which would deliver significant administrative efficiency gains for employers of all sizes without diminishing participant protections.”
“Electronic delivery reflects how employees and their families access and manage benefit information, and a default electronic framework has the potential to reduce printing, mailing, and administrative costs while making plan information easier for participants and beneficiaries to access, retain, and reference. Importantly, the proposal is optional and preserves protections for individuals who prefer paper, including the ability to request paper copies and to opt out of electronic delivery entirely.”
Society for Human Resources Management:
“Greater administrative efficiency can help employers direct more resources toward benefits employees value. When asked where they would be most likely to expand benefits if administrative costs were reduced, HR professionals most often identified supplemental health and wellness offerings (43%) and well-being programs (39%).”
“The proposed rule is a commonsense opportunity to modernize outdated requirements and preserve participant choice, while achieving significant environmental, climate, and resource benefits. We respectfully urge the Department to finalize the proposed rule promptly and expand the safe harbor to include all ERISA-covered welfare plans.”
28 undersigned employers, unions, benefits administrators, health plans, and other key stakeholders: [1]
“By modernizing disclosure delivery requirements, the proposal would allow participants and beneficiaries to receive, manage, and act on important health plan information electronically while preserving meaningful protections for those who prefer paper delivery. Default e-delivery would give patients timely access to and greater control over their health care information, empowering workers and families to make informed care decisions. It would also reduce unnecessary waste, including the trees, water, and energy consumed under the current paper-based system.”
The breadth of support behind default e-delivery gives DOL a clear opportunity to deliver a meaningful reform to empower American workers. Finalizing the rule and extending it across all ERISA-covered welfare plans would create a more consistent benefits experience, reduce billions in unnecessary administrative costs and paper use, and give workers real-time access to critical health information.
DOL can take a meaningful step forward in modernizing benefits communications for ERISA health and welfare plans by finalizing this latest proposal.
[1] The ERISA Industry Committee, AHIP, American Council of Life Insurers (ACLI), Associated General, Contractors of America, Association for Behavioral Health and Wellness (ABHW), Business Group on Health, Blue Cross Blue Shield Association, National Alliance of Healthcare Purchaser Coalitions, National Association of Dental Plans (NADP), National Association of Professional Employer Organizations, National Coordinating Committee for Multiemployer Plans (NCCMP), National Retail Federation, CHRO Association, Partnership for Employer Sponsored Coverage (P4ESC), Delta Dental Plans Association, Purchaser Business Group on Health, Environmental Paper Network, SAG-AFTRA, Fidelity Investments, Healthcare Leadership Council, Marsh, MetLife, NABIP, Self Insurance Institute of America, Silicon Valley Employers Forum, Small Business Majority, U.S. Chamber of Commerce, UnitedHealth Group