§ 155.740 SHOP employer and employee eligibility appeals requirements for plan years beginning prior to January 1, 2018. ( a ) *Definitions.* The definitions in §§ 155.20, 155.300, and 155.500 apply to this section.
( b ) *General requirements.* ( 1 ) A State, establishing an Exchange that provides for the establishment of a SHOP pursuant to § 155.100 must provide an eligibility appeals process for the SHOP. Where a State has not established an Exchange that provides for the establishment of a SHOP pursuant to § 155.100, HHS will provide an eligibility appeals process for the SHOP that meets the requirements of this section and the requirements in paragraph (b)(2) of this section.
( 2 ) The appeals entity must conduct appeals in accordance with the requirements established in this section and §§ 155.505(e) through (h) and 155.510(a)(1) and (2) and (c).
( c ) *Employer right to appeal.* An employer may appeal— ( 1 ) A notice of denial of eligibility under § 155.715(e); or
( 2 ) A failure by the SHOP to provide a timely eligibility determination or a timely notice of an eligibility determination in accordance with § 155.715(e).
( d ) *Employee right to appeal.* An employee may appeal— ( 1 ) A notice of denial of eligibility under § 155.715(f); or
( 2 ) A failure by the SHOP to provide a timely eligibility determination or a timely notice of an eligibility determination in accordance with § 155.715(f).
( e ) *Appeals notice requirement.* Notices of the right to appeal a denial of eligibility under § 155.715(e) or (f) must be written and include— ( 1 ) The reason for the denial of eligibility, including a citation to the applicable regulations; and
( 2 ) The procedure by which the employer or employee may request an appeal of the denial of eligibility.
( f ) *Appeal request.* The SHOP and appeals entity must— ( 1 ) Allow an employer or employee to request an appeal within 90 days from the date of the notice of denial of eligibility to— ( i ) The SHOP or the appeals entity; or
( ii ) HHS, if no State Exchange that provides for establishment of a SHOP has been established;
( 2 ) Accept appeal requests submitted through any of the methods described in § 155.520(a)(1);
( 3 ) Comply with the requirements of § 155.520(a)(2) and (3); and
( 4 ) Consider an appeal request valid if it is submitted in accordance with paragraph (f)(1) of this section.
( g ) *Notice of appeal request.* ( 1 ) Upon receipt of a valid appeal request, the appeals entity must— ( i ) Send timely acknowledgement to the employer, or employer and employee if an employee is appealing, of the receipt of the appeal request, including— ( A ) An explanation of the appeals process; and
( B ) Instructions for submitting additional evidence for consideration by the appeals entity.
( ii ) Promptly notify the SHOP of the appeal, if the appeal request was not initially made to the SHOP.
( 2 ) Upon receipt of an appeal request that is not valid because it fails to meet the requirements of this section, the appeals entity must— ( i ) Promptly and without undue delay, send written notice to the employer or employee that is appealing that— ( A ) The appeal request has not been accepted,
( B ) The nature of the defect in the appeal request; and
( C ) An explanation that the employer or employee may cure the defect and resubmit the appeal request if it meets the timeliness requirements of paragraph (f) of this section, or within a reasonable timeframe established by the appeals entity.
( ii ) Treat as valid an amended appeal request that meets the requirements of this section.
( h ) *Transmittal and receipt of records.* ( 1 ) Upon receipt of a valid appeal request under this section, or upon receipt of the notice under paragraph (g)(2) of this section, the SHOP must promptly transmit, via secure electronic interface, to the appeals entity— ( i ) The appeal request, if the appeal request was initially made to the SHOP; and
( ii ) The eligibility record of the employer or employee that is appealing.
( 2 ) The appeals entity must promptly confirm receipt of records transmitted pursuant to paragraph (h)(1) of this section to the SHOP that transmitted the records.
( i ) *Dismissal of appeal.* The appeals entity— ( 1 ) Must dismiss an appeal if the employer or employee that is appealing— ( i ) Withdraws the request in accordance with the standards set forth in § 155.530(a)(1); or
( ii ) Fails to submit an appeal request meeting the standards specified in paragraph (f) of this section.
( 2 ) Must provide timely notice to the employer or employee that is appealing of the dismissal of the appeal request, including the reason for dismissal, and must notify the SHOP of the dismissal.
( 3 ) May vacate a dismissal if the employer or employee makes a written request within 30 days of the date of the notice of dismissal showing good cause why the dismissal should be vacated.
( j ) *Procedural rights of the employer or employee.* The appeals entity must provide the employer, or the employer and employee if an employee is appealing, the opportunity to submit relevant evidence for review of the eligibility determination.
( k ) *Adjudication of SHOP appeals.* SHOP appeals must— ( 1 ) Comply with the standards set forth in § 155.555(i)(1) and (3); and
( 2 ) Consider the information used to determine the employer or employee's eligibility as well as any additional relevant evidence submitted during the course of the appeal by the employer or employee.
( l ) *Appeal decisions.* Appeal decisions must— ( 1 ) Be based solely on— ( i ) The evidence referenced in paragraph (k)(2) of this section;
( ii ) The eligibility requirements for the SHOP under § 155.710(b) or (e), as applicable.
( 2 ) Comply with the standards set forth in § 155.545(a)(2) through (5); and
( 3 ) Be effective as follows: ( i ) If an employer is found eligible under the decision, then at the employer's option, the effective date of coverage or enrollment through the SHOP under the decision can either be made retroactive to the effective date of coverage or enrollment through the SHOP that the employer would have had if the employer had been correctly determined eligible, or prospective to the first day of the month following the date of the notice of the appeal decision.
( ii ) For employee appeal decisions only, if an employee is found eligible under the decision, then at the employee's option, the effective date of coverage or enrollment through the SHOP under the decision can either be made effective retroactive to the effective date of coverage or enrollment through the SHOP that the employee would have had if the employee had been correctly determined eligible, or prospective to the first day of the month following the date of the notice of the appeal decision.
( iii ) If the employer or employee is found ineligible under the decision, then the appeal decision is effective as of the date of the notice of the appeal decision.
( m ) *Notice of appeal decision.* The appeals entity must issue written notice of the appeal decision to the employer, or to the employer and employee if an employee is appealing, and to the SHOP within 90 days of the date the appeal request is received.
( n ) *Implementation of SHOP appeal decisions.* The SHOP must promptly implement the appeal decision upon receiving the notice under paragraph (m) of this section.
( o ) *Appeal record.* Subject to the requirements of § 155.550, the appeal record must be accessible to the employer, or employer and employee if an employee is appealing, in a convenient format and at a convenient time.
( p ) *Applicability date.* The provisions of this section apply for plan years beginning prior to January 1, 2018. Section 155.741 is applicable for plan years beginning on or after January 1, 2018.
[78 FR 54141, Aug. 30, 2013, as amended at 79 FR 30350, May 27, 2014; 81 FR 12348, Mar. 8, 2016; 81 FR 94180, Dec. 22, 2016; 83 FR 17067, Apr. 17, 2018]