From Paper-First to Electronic-First.
Employers and group health plans should be aware of a proposed U.S. Department of Labor (DOL) rule that could make electronic delivery of employee benefit information easier and more flexible.
This proposal labels the current methods as “outdated” and hopes to bring distribution up to speed with modern technology. The proposed rule could make electronic delivery the default for many group health plan disclosures. The DOL says the change would better reflect how employees access information today through smartphones, computers, and the internet.
Under current rules, employers must provide employees with health plan documents, notices, and disclosures. While electronic delivery is allowed in certain circumstances, employers must follow specific DOL “Safe Harbor” requirements, which can make email and online delivery more complicated.
Under the proposal, employers would notify employees electronically when a required document is available online. Employers could send a separate Notice of Internet Availability for each document or, in certain circumstances, combine notices for multiple documents. Combined notices generally would be limited to annual disclosures that do not require participant action by a specific deadline, as well as documents provided with annual enrollment materials.
The proposal would not eliminate paper delivery. Employers could continue using traditional mail when appropriate, allowing plan sponsors to choose the approach that best fits their workforce and administrative needs.
This proposed rule makes progress in attempting to simplify and parallel benefit distributions as it relates to the 401k and welfare benefits arenas. However, since the proposed rule would only apply to medical plans the other typical benefit arrangements (e.g., life, disability, AD&D, and business travel accident) would still be subject to the more limited 2002 Electronic Disclosure Safe Harbor rules. Unless the proposed rules are modified to include these arrangements, employers will be challenged on how to deal with different safe harbor provisions in this area. This is especially true since most employers utilize “umbrella” wrap plan documents to include all such benefits. Hopefully, comments made by employers and their service providers will help the DOL decide that an expansion to other welfare benefit arrangements is appropriate and will include such other benefits in its final version.
In the meantime, employers and plan administrators should consider reviewing their current benefit-communication practices, including whether employee contact information is current.
Please find the proposed rule (and the method to make comments by September 21, 2026) in the Federal Register. https://www.federalregister.gov/documents/2026/07/23/2026-14917/electronic-disclosure-by-group-health-plans-under-erisa
READ OUR RESPONSE LETTER TO DOL.
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