[UCRDBR] FSA and COBRA Administrator Transition on January 1, 2021

[Departmental Benefits Representatives]

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November 5, 2020

To:          Department Benefits Representatives (DBRs)
From:      HR Benefits Office
Re:          FSA and COBRA Administrator Transition on January 1, 2021
Effective January 1, 2021, Discovery Benefits will replace WageWorks as our COBRA and FSA administrator. With Open Enrollment underway, we want to ensure you have the most up-to-date information about this transition.

Flexible Spending Accounts
WageWorks will continue to manage the grace period for DepCare and claims run-out period for both FSA Plans. As of December 31, 2020, the FSA debit card issued by WageWorks will be deactivated. Participants may continue to access FSA accounts online and submit all 2020 claims and DepCare grace period claims to WageWorks until April 15, 2021.

Health FSA carryover funds will be deposited to the Discovery Benefits' account by the middle of May 2021.

COBRA Open Enrollment and Transition from WageWorks to Discovery Benefits
Discovery Benefits will mail Transition Announcements to all current COBRA participants and individuals who are eligible to elect COBRA continuation by Friday, November 6, 2020. The pandemic relief provisions provided under the "Extension Rule" extend the COBRA election period during the Outbreak Period (See June 4, 2020 HRB memo titled "Important Changes to UC Benefits Programs for Pandemic Relief<https://hr.ucr.edu/document/important-changes-uc-benefits-programs-pandemic-relief>").

Existing Enrolled COBRA Members
Following the Transition Announcement, and after confirming that December 2020 premium has been received by WageWorks, Discovery Benefits will mail an Open Enrollment (OE) package to enrolled COBRA members. In addition to an Open Enrollment election form, the package will include detailed information about how to create an online COBRA account and premium payment instructions for 2021. Participants need to make OE elections within 30 days after the mailing date of the package; otherwise, their existing plans will continue for 2021. Coordination between Discovery Benefits and WageWorks will continue through early January 2021. Any payments received by WageWorks for coverage in 2021 will be credited to members' accounts and applied to 2021 premium payments in Discovery Benefits' system. View the Transition Announcement for existing enrolled COBRA members<https://hr.ucr.edu/document/transition-announcement-existing-enrolled-cobra-members>.

Pending COBRA Enrollment
Under the pandemic relief provisions noted above, individuals with COBRA qualifying events that occurred during the Outbreak Period (starting March 1, 2020) have an extended election period to enroll in COBRA. As of today, there are over 7,000 individuals in pending election status. If a terminated employee or other eligible individual decides to enroll in COBRA continuation by December 31, 2020, the election form needs to be sent to WageWorks. Once the initial election and payment have been confirmed, Discovery Benefits will mail the new participant an Open Enrollment package with directions on how to make plan changes, create an online COBRA account and make payments for 2021. If COBRA continuation is elected on or after January 1, 2021, the election form needs to be sent to Discovery Benefits. View the Transition Announcement for pending enrolled COBRA members<https://hr.ucr.edu/document/transition-announcement-pending-enrolled-cobra-members>.

We advise departments to process terminations in the UCPath system as soon as possible. WageWorks will continue to process COBRA enrollments from our members until December 31, 2020. All participants' and employers' online access to WageWorks will be de-activated as of December 31, 2020. If a participant accidentally sends the enrollment election to WageWorks after December 31, 2020, the form will be forwarded to Discovery Benefits.



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