Federal regulators have issued regulations that propose changes to the Summary of Benefits and Coverage (SBC) that would be effective for plans beginning on or after September 1, 2015.
The proposed changes issued by the Departments of Health and Human Services, Labor and the Treasury, are intended to add features making the SBC more user-friendly and help people shopping for health insurance coverage better understand their options , according to a fact sheet and press release distributed by the agencies.
All health plans and issuers are required to provide consumers with a standardized, brief
Under the proposed revisions, a typical SBC would be about two and a half pages, compared to four pages now. A revised Uniform Glossary is also aimed at making it easier for consumers to understand insurance terms such as individual responsibility requirement, minimum value, cost -sharing reductions, premium tax credit and preventative care.
While the SBC is typically prepared by the insurance carrier or plan administrator, its content and distribution is the responsibility of the employer-sponsor, who face a potential fine $1,000 for each instance of willfully failing to provide an SBC.
