News Release

US Department of Labor proposes rule to modernize electronic delivery for group health plans, lowering costs

WASHINGTON - The U.S. Department of Labor's Employee Benefits Security Administration today issued a proposed rule that would modernize how group health plans deliver required disclosures, making communication faster, more efficient, and less costly.

The proposed rule would establish a safe harbor allowing approximately 2.8 million group health plans covered by the Employee Retirement Income Security Act to provide required documents digitally. Group health plans currently print and mail up to 11 billion sheets of paper each year. The department estimates the proposal could save group health plans $3.9 billion over 10 years while giving participants and beneficiaries easier, more reliable access to their health plan information.

"Today, the Department of Labor is helping employers save billions by modernizing how health plans communicate with Americans," said Acting Secretary Keith Sonderling. "This proposal replaces outdated paperwork with clear, accessible digital tools that help families get the information they need, when they need it. It's a commonsense change that delivers real savings and better service for workers across the country."

The department is proposing to add another method ERISA-covered group health plans can use to provide electronic communication to recipients. In 2002, the department issued a rule that provided a safe harbor for electronic communication to recipients in two categories: participants who can be considered "wired at work," and participants, beneficiaries, and other individuals who consent to receive documents electronically.

The new safe harbor created by the proposed rule is similar to the 2020 safe harbor rule for pension plans. Group health plans may continue to follow the 2002 safe harbor rule for electronic delivery or provide paper documents.

"The Department of Labor is proposing to modernize communications between healthcare plans and the beneficiaries and participants they serve," said Assistant Secretary for Employee Benefits Security Daniel Aronowitz. "If finalized, this rule will make required disclosures more efficient, significantly reduce administrative costs, and make it easier for people to access and manage their health plan documents online."

EBSA ensures the security of retirement, health, and other job-based benefits for American workers and their families. The agency is responsible for protecting more than 155 million workers, retirees, and their families, who are covered by approximately 2.8 million health plans, 837,000 private retirement plans, and 521,000 additional welfare benefit plans. Together, these plans hold about $15.2 trillion in assets.

Employers and workers can contact EBSA at askebsa.dol.gov or call 866-444-3272 toll-free for help with private sector job-based retirement and health plans.

Read the notice of proposed rulemaking on electronic disclosure by group health plans under ERISA.