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OPS-SOP-022 — SPD / SBC Production, Review & Distribution

Document IDOPS-SOP-022 Version1.0 Effective Date[TBD — upon adoption] Next ReviewAnnually OwnerOperations
Prepared ByOperations

1. Purpose

This SOP defines the annual production, legal review, and distribution cycle for the Summary Plan Description (SPD) and Summary of Benefits and Coverage (SBC) for all plan options offered under the Unity Care Member Plan Master Trust. It establishes responsibilities, timelines, review checkpoints, and corrective action procedures to ensure ERISA and ACA compliance.

2. Scope

Applies to all plan options offered to participating employer groups under the Unity Care Member Plan Master Trust. Covers SPD production, SBC production, mid-year Summary of Material Modification (SMM) notices, and all electronic and paper distribution activities.

3. Roles & Responsibilities

Role Responsibility
TPA (Allied Benefit Systems) Draft SPD and SBC documents based on approved plan design; incorporate Operations-directed revisions; finalize for distribution.
Legal Counsel (Dickinson Wright PLLC) Review final SPD drafts for ERISA compliance, MHPAEA parity language, and trust entity accuracy. Approve before distribution.
Operations Coordinate the full cycle: trigger Allied, route for legal review, run the review checklist, approve distribution, maintain the distribution log.
Participating Employer (Plan Administrator) Distribute SPD/SBC to enrolled employees within required timeframes; retain proof of distribution.
Compliance Monitor calendar triggers; confirm SMM requirements when mid-year plan changes occur.

4. Triggers

The SPD/SBC production cycle is initiated by any of the following events:

5. Annual Production Process

Step 1 — Operations Initiates Draft Request (T-90 days)

Operations contacts Allied Benefit Systems to initiate the SPD/SBC draft cycle for the upcoming plan year. Operations provides Allied with the finalized plan design, benefit summaries, cost-sharing schedules, and any changes from the prior year.

Step 2 — Allied Produces Draft SPD and SBC (T-75 days)

Allied drafts the SPD and SBC documents. Allied confirms that plan options, benefit tiers, and cost-sharing tables reflect approved plan design. Draft documents are delivered to Operations for review.

Step 3 — Operations Review Checklist (T-70 days)

Operations performs a structured review of each draft document using the checklist in Section 6 below. Any deficiencies are returned to Allied with written correction instructions.

Step 4 — Legal Review (T-60 days)

Operations routes the corrected SPD draft to Legal Counsel (Dickinson Wright PLLC) for ERISA compliance review. Legal Counsel provides written approval or revision requests within 10 business days. Operations tracks review status and follows up as needed.

Step 5 — Final Corrections & Approval (T-45 days)

Operations incorporates all Legal Counsel revisions. Final SPD and SBC are sent to Allied for formatting. Operations retains signed/email approval from Legal Counsel in the compliance file.

Step 6 — Distribution to Employers (T-30 days)

Operations delivers final SPD and SBC files to each participating employer with written distribution instructions. Employers must distribute to all enrolled employees no later than 90 days after the plan year start date (or within 30 days for newly eligible employees).

Step 7 — Distribution Log Updated

Operations records each distribution event in the SPD/SBC Distribution Log (see Section 9). Employers confirm distribution and return acknowledgment within 30 days of receipt.

6. SPD / SBC Review Checklist

Operations must verify each item below before routing the SPD/SBC for Legal Counsel review. Mark each item as Confirmed, Revision Needed, or N/A.

# Checklist Item Verified By Status
1 Trust entity name reads exactly: "Unity Care Member Plan Master Trust" (no abbreviations or alternate names) Operations ___________
2 Plan Administrator identified as each participating employer (not Unity Care Solutions, LLC or Trust) Operations ___________
3 DPC (Direct Primary Care) benefit described as an embedded benefit — not listed as a separate line-item or standalone plan option with its own cost-sharing schedule Operations ___________
4 Pre-authorization penalty language correctly describes impact on out-of-pocket maximum (penalty does not count toward OOP max if required preauth was not obtained) Operations / Legal Counsel ___________
5 Rx tiers populated with correct formulary tier descriptions and cost-sharing amounts for each plan option Operations / Allied ___________
6 Plan Number 501 referenced in the plan identification section (ERISA plan number) Operations ___________
7 MHPAEA mental health and substance use disorder parity language present and accurate; no benefit limits more restrictive than medical/surgical equivalents Legal Counsel ___________
8 Named fiduciary, claims administrator (Allied), and appeals procedures correctly identified Operations / Legal Counsel ___________
9 SBC coverage examples completed and mathematically accurate Allied ___________
10 Effective date, plan year, and employer-specific information correct for each employer's version (if customized) Operations ___________

7. Distribution Requirements

Scenario Deadline Method
Existing enrollees — plan year start Within 90 days of plan year start date Electronic (with DOL safe harbor consent) or paper
Newly eligible employee Within 90 days of becoming covered under the plan Electronic or paper at enrollment
Upon written request Within 30 days of request Paper or electronic as requested
New employer group onboarding Before plan effective date Delivered by Operations to employer HR; employer distributes
Electronic Distribution: To use electronic delivery, each employer must obtain affirmative electronic consent from employees per DOL safe harbor rules (29 CFR §2520.104b-1) or distribute under the 2020 Final Rule (for employees with work-related computer access). Operations confirms which method each employer uses at onboarding.

8. Summary of Material Modification (SMM)

When a material change to plan terms occurs mid-plan-year, a Summary of Material Modification (SMM) must be produced and distributed.

Deadline: SMM must be distributed no later than 60 days after the material change is adopted. Failure to distribute timely may expose the Plan Administrator to ERISA penalties.
Step 1 Compliance identifies the change as material and notifies Operations. Material changes include: benefit additions or eliminations, cost-sharing increases, network changes, and eligibility changes.
Step 2 Operations requests an SMM draft from Allied describing the specific changes in plain language.
Step 3 Legal Counsel reviews SMM before distribution.
Step 4 Operations distributes SMM to all affected employers with written instructions. Employers distribute to affected enrollees within the 60-day window.
Step 5 Distribution logged per Section 9. SPD is updated at next annual cycle or earlier if needed.

9. Error Correction Process

If errors are identified in a distributed SPD or SBC:

10. Distribution Log

Operations maintains a perpetual SPD/SBC Distribution Log. Each entry must include:

Field Description
Document Name & Version SPD, SBC, or SMM; plan year; version number
Employer Group Name of participating employer
Date Delivered to Employer Date Operations sent files to employer HR
Distribution Method Electronic (DOL safe harbor) or paper
Employee Count Number of enrolled employees to whom distribution was made
Employer Confirmation Date Date employer confirmed employee distribution complete
Notes Any exceptions, corrections, or special circumstances
Retention: Distribution logs must be retained for a minimum of 6 years per ERISA §107. Reference OPS-COMP-005 for the full enrollment reconciliation process.

11. Related Documents