Hurricane Katrina: Health, Retirement and Disability
Benefits

For taxpayers who participate in their employers health plans and were directly affected by Hurricane Katrina, the following deadlines have effectively been extended; see 70 Fed. Reg. 55500 (9/21/05):

• Making changes to coverage as a result of special events (e.g., the birth of a child or a divorce).

• Submitting health claims.

• Appealing adverse decisions on previously submitted health claims.

For lost health coverage, the following deadlines have also effectively been extended:

• Notifying an employer about losing health coverage (e.g., leaving to take another job or losing coverage previously available through a spouse).

• Electing Consolidated Omnibus Reconciliation Act of 1985 (COBRA) continuation coverage.

• Making premium payments for COBRA continuation coverage.

• Submitting health claims.

• Appealing adverse decisions on health claims submitted previously.

• Period during which health coverage is obtainable without losing coverage for pre-existing conditions.

In determining these deadlines, the employers health plan must disregard the period from Aug. 29, 2005 to Feb. 28, 2006. To be considered directly affected by Hurricane Katrina, one of the following must apply:

1.  A taxpayer must have been living or working in a Federal Emergency Management Agency (FEMA)-designated individual assistance area (see Exhibit 1).

2.  A taxpayers employer was located in a FEMA-designated individual assistance area (for health plans covering just the employers employees).

3.  An employer employing more than 50% of the participants in the health plan was located in a FEMA-designated individual assistance area (for health plans covering employees of more than one employer).

4.  The health plans office or its administrator was located in a FEMA-designated individual assistance area.

5.  The primary recordkeeper of a taxpayers health plan was located in a FEMA-designated individual assistance area.

Retirement and Disability Benefits

If taxpayers participate in their employers retirement or disability plan and were directly affected by Hurricane Katrina, the deadlines for the following have effectively been extended; see 70 Fed. Reg. 55500 (9/21/05):

• Submitting a claim.

• Appealing an adverse decision on a claim.

In determining the deadline, the plan must disregard the period from Aug. 29, 2005 to Feb. 28, 2006.

From Martin Nissenbaum, New York, NY