ARE WE REQUIRED TO INCLUDE A DESCRIPTION OF THE COST SHARING PROVISION WITHIN OUR SPD, UNDER ERISA?

Yes, you are required to include a description of the cost sharing provision within your SPD. ERISA requires a description of any cost sharing provisions, which include premiums, deductibles, coinsurance, and copayment amounts, which are considered as employee responsibility. Since the specific premiums change annually, it is common practice for employers to choose not to include them within the SPD. Instead the enrollment materials are referenced for actual premiums. For example, ERISA Documents Inc. provides an SPD that states that any required premium will be shown on the employee’s enrollment materials. By stating this, the premium was described by reference in your SPD.