For Plan years beginning January 1, 2021 and thereafter, the use of an updated Summary of Benefits and Coverage (“SBC”) form is required. Recall, a plan must use the SBC template and supporting Glossary of Terms to ensure plan details are conveyed in an accurate and uniform manner to participants.
Plans and issuers must use the 2021 SBC on the first day of the first open enrollment period for coverage for plan years beginning on or after 1/01/2021. Such forms are available in a variety of formats. Changes to the SBC template include the following:
- an added answer option for the “Minimum Value” section;
- a description of “Minimum Essential Coverage”;
- removal of the reference to the requirement to obtain health coverage;
- changes to the examples of coverage;
- an updated calculator for plan sponsors’ use for required examples; and
- a new supporting document outlining all updates to the SBC.
Updated SBC documents may be found at the following links: