DOL proposes updated e-disclosure rule for ERISA group health plans

The Department of Labor has introduced a proposed rule that could change how group health plans under ERISA handle required disclosures. This proposal creates an additional safe harbor for electronic delivery. Currently, plan administrators rely on a 2002 framework that focuses on employees who use work computers daily. This outdated model creates hurdles for companies with large frontline, retail, manufacturing, or field-based workforces who lack regular access to work email or company portals.

Under the new proposal, plan sponsors could use a notice-and-access approach similar to what is currently available for retirement plans. Instead of mailing paper copies by default, administrators could host documents like summary plan descriptions online. They would then send a notice of internet availability to participants. This method requires an initial paper notice to inform participants of the change and their right to opt out.

Participants maintain their right to request paper copies free of charge at any time. The proposed rule also includes specific requirements for the notice of internet availability, including instructions on where to find documents and how to contact the plan administrator. Documents must remain accessible online for at least one year and be presented in a searchable format.

It is critical to note that this is a proposal, not a final rule. The deadline for public comments is September 21, 2026. If finalized, the new safe harbor could become available as early as January 1, 2027. This change would not apply to other welfare plans like life or disability insurance. Consequently, employers using wrap summary plan descriptions that cover multiple types of benefits might find the new option limited if the Department does not provide further clarification.

Employers should use this time to evaluate their current administrative processes. This includes checking if existing enrollment platforms and vendors can support the new requirements. While the rule aims to reduce printing and mailing costs, it requires coordination between employers, insurers, and third-party administrators to track opt-outs, document availability, and bounce-back notifications. Plan sponsors should continue following current disclosure rules while monitoring the status of this rulemaking.