For years, employers and plan administrators have increasingly moved benefits communication online. Employees enroll electronically, access benefit information through portals and receive reminders by email or text. Yet federal rules governing the delivery of certain group health plan documents have not always kept pace with the way organizations and employees communicate today.
A new proposal from the U.S. Department of Labor could help narrow that gap.
In July, the Department of Labor’s Employee Benefits Security Administration proposed a new electronic disclosure safe harbor for group health plans subject to the Employee Retirement Income Security Act, or ERISA. If finalized, the rule would give plan administrators another option for delivering required plan documents electronically while preserving participants’ ability to receive information on paper.
For employers, the proposal is worth watching. It could eventually simplify benefits administration, reduce printing and mailing costs and change how organizations approach required health plan communications.
What Is the DOL Proposing?
Current rules already allow electronic delivery of certain ERISA disclosures under specific circumstances. The existing 2002 electronic disclosure safe harbor generally applies to employees who routinely use a computer as part of their job and to other participants or beneficiaries who affirmatively consent to electronic delivery.
The proposed rule would add another safe harbor specifically for group health plans.
Under the proposal, plan administrators meeting the required conditions could generally notify participants electronically that covered documents are available through a website or other electronic location. Participants would retain the right to request paper copies and could opt out of electronic delivery entirely.
Importantly, the proposal would provide an additional method of compliance rather than eliminate existing options. Plans could continue using the existing electronic-delivery safe harbor or furnishing documents on paper.
The proposal is modeled in part on an electronic disclosure framework already available to certain retirement plans.
Why Is the DOL Considering the Change?
Benefits administration has become increasingly digital, but required disclosures can still generate enormous amounts of paper.
According to the Department of Labor, approximately 2.8 million ERISA-covered group health plans could potentially be affected by the proposal. The agency estimates that group health plans currently print and mail as many as 11 billion sheets of paper annually.
The Department estimates that expanded electronic delivery could save group health plans approximately $3.9 billion over a 10-year period.
Beyond postage and printing costs, electronic delivery may also provide practical administrative advantages. Digital documents can be easier to update, organize and retrieve. Employees may be able to access important plan information from multiple locations rather than searching through documents received months earlier.
For HR and benefits teams already managing enrollment, eligibility changes, carrier communications, required notices and other administrative responsibilities, reducing unnecessary manual processes can be meaningful.
MSI Benefits Group works with employers throughout the year to help manage these responsibilities through its administrative support and compliance services, including regulatory compliance, required reporting and benefits administration.
Electronic Delivery Still Has to Work for Employees
Moving documents online does not automatically make benefits communication effective.
Employees still need to know that information is available, understand why it matters and be able to locate it when they need it.
That distinction is particularly important with required plan documents. A disclosure may technically be delivered, but its practical value is limited if an employee overlooks the notification, cannot access the website or does not understand what action may be required.
Employers should therefore view electronic delivery as part of a broader communication strategy rather than simply a way to replace paper.
As we discussed in Rethinking Benefits Communication: Turning Awareness into Employee Action, effective benefits communication should help employees move beyond simply receiving information to understanding how their benefits apply to real healthcare and financial decisions.
The proposed DOL framework also recognizes that digital communication will not work equally well for everyone. Participants would retain the ability to request paper copies and opt out of electronic delivery, providing an important alternative for individuals who prefer or require traditional communication methods.
What Should Employers Do Now?
For now, no immediate change is required.
The DOL proposal has not been finalized, and employers should continue following the electronic and paper disclosure rules currently applicable to their plans.
However, employers can use this period to review their existing communication processes.
Consider questions such as:
- How are required group health plan documents currently distributed?
- Which communications are mailed and which are already delivered electronically?
- Are employee email addresses and other contact information accurate and routinely updated?
- How easily can employees access plan documents through existing portals or websites?
- Are electronic communications designed so employees can quickly understand what they have received and whether action is required?
- Is there a reliable process for employees who request paper materials?
Organizations that already have strong digital enrollment, communication and document-management systems may be better positioned to take advantage of additional electronic-delivery options if the proposal ultimately becomes final.
What Happens Next?
The Department of Labor is accepting public comments on the proposed rule through September 21, 2026.
After reviewing those comments, the agency could finalize the rule as proposed, modify portions of it or take additional action before implementation. The timing and requirements of any final rule therefore remain subject to change.
Employers should avoid changing their disclosure procedures based solely on the proposal but should continue monitoring the rulemaking process.
At a Glance: The DOL’s Electronic Delivery Proposal
The proposal is not yet final. Existing ERISA disclosure requirements remain in effect.
A new safe harbor could expand electronic delivery. ERISA-covered group health plans could gain another method for furnishing required documents electronically.
Paper would remain available. Participants could request paper copies or opt out of electronic delivery.
Potential savings are significant. The DOL estimates the proposal could save group health plans approximately $3.9 billion over 10 years.
Communication still matters. Electronic delivery should make information easier to access, not simply shift documents from the mailbox to the inbox.
Staying Ahead of Benefits Compliance Changes
Employee benefits regulation continues to evolve, and seemingly administrative changes can have important implications for employers, HR departments and plan participants.
MSI Benefits Group helps organizations navigate changing benefits requirements while developing practical strategies for compliance, administration and employee communication.
As the Department of Labor considers this proposal and other regulatory changes affecting group health plans, employers should continue reviewing their processes and working with their benefits advisors to understand how new requirements may affect their organizations.
Have questions about your group health plan or benefits administration strategy? Contact MSI Benefits Group to start a conversation.
External Resource:
For additional information, review the U.S. Department of Labor announcement regarding the proposed electronic disclosure rule for group health plans.