Bulletin Encourages Carriers to Relax Premium Payment Due Dates, Grace Periods, and Late Fees for Employers Impacted by COVID-19

On March 19, 2020, the Insurance Department published Notice 2020-4. The bulletin encourages carriers to assist employers (and other policyholders) who have been negatively impacted by the COVID-19 pandemic by relaxing due dates for premium payments, extending grace periods, waiving late fees and penalties and allowing payment plans for premium payments to otherwise avoid a lapse in coverage. The bulletin directs carriers to consider cancellation or nonrenewal of policies only after exhausting other efforts to work with employers (and other policyholders) to continue coverage.

Employers with fully insured plans in Pennsylvania that may need assistance with premium payments should contact and discuss the issue with their carrier.

Notice 2020-4 »