U.S. Department of Labor proposes digital delivery rule for group health plans

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DOL digital delivery rule

Highlights

U.S. Department of Labor proposes a rule allowing ERISA-covered group health plans to provide required disclosures digitally via a new safe harbor.
The new digital delivery framework could replace up to 11 billion printed sheets annually, reducing administrative costs and increasing efficiency for plan sponsors.
EBSA oversees benefits for over 155 million Americans under approximately 2.8 million health plans with $15.2 trillion in total assets, amplifying rule impact.

Electronic disclosure framework expands

As reported by the U.S. Department of Labor, the Employee Benefits Security Administration has issued a proposed rule that creates a new safe harbor for electronic delivery of required documents by group health plans.

The proposal allows ERISA-covered plans to provide disclosures digitally as an additional communication method. The department says group health plans currently print and mail up to 11 billion sheets of paper each year, and the new framework is intended to make communication faster, more efficient and less costly.

The proposed safe harbor is modeled on a 2020 safe harbor rule for pension plans. Group health plans may still continue using the 2002 safe harbor for electronic delivery, which applies to workers considered wired at work and to recipients who consent to electronic documents, or they may continue providing paper documents.

Cost savings and benefits impact

Acting Secretary Keith Sonderling says the proposal helps employers reduce outdated paperwork and replace it with digital tools that make health plan information easier for families to access when needed. Assistant Secretary for Employee Benefits Security Daniel Aronowitz says that, if finalized, the rule will improve the efficiency of required disclosures, lower administrative costs and help people manage plan documents online more easily.

EBSA oversees 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 family members covered by about 2.8 million health plans, 837,000 private retirement plans and 521,000 other welfare benefit plans, with roughly $15.2 trillion in combined assets.

In our earlier article on the planned U.S. tariffs on imported generic drugs, we explained how the administration aims to encourage onshoring of pharmaceutical manufacturing by introducing steep duties starting in 2028. We also outlined possible country- and company-specific carve-outs and the industry’s calls for clearer rules to avoid disruptions in access to affordable medicines.

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