Advance Notice of Benefit Changes

Effective for plan years beginning on or after September 23, 2012, if any mid-year material modifications in health plan coverage, such as increases in cost-sharing or benefit reductions, are made that are not reflected in the most recently distributed Summary of Benefits and Coverage (SBC), the plan sponsor must send notice of the changes to plan participants at least 60 days before the modifications become effective. During open enrollment, plans and issuers must provide an updated SBC in accordance with the requirements otherwise applicable to SBCs, but do not have to provide a separate notice, 60 days in advance of plan changes that take effect at renewal.


Neither American Fidelity Assurance Company nor American Fidelity Administrative Services provides tax or legal advice and, given the complexity of these laws, we always recommend working with your legal counsel on how the laws impact your specific situation. 

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