With the new confidentiality protections for Substance Use Disorder (SUD) patient records taking effect on February 16, 2026, groups may need to amend their Wrap Plan Documents to incorporate these updated requirements. In addition, a Summary of Material Modifications (SMM) must be issued to Plan Participants to notify them of changes to the plan. Finally, the Department of Health and Human Services (HHS) has updated the model notice — the Notice of Privacy Practices (NOPP). This notice must be distributed, as simply updating the Wrap Plan Documents does not fulfill the delivery requirements.
Updating the Wrap Plan Document and SPD
Below is a high-level overview of some of the updates now in play, based on information from the HHS Fact Sheet for the 42 CFR Part 2 Final Rule. In addition, details on Wrangle’s Wrap Plan Document Amendments are noted below.
Why Were These Provisions Established?
These provisions are intended to help address concerns that discrimination and fear of prosecution may deter individuals from seeking treatment for SUD.
Changes in the New Part 2 Rule
Patient Rights:
Provides new rights for patients under Part 2, including the right to obtain an accounting of disclosures and to request restrictions on certain disclosures, consistent with the HIPAA Privacy Rule.
Patient Consent and SUD Counseling Notes
- Prohibits combining patient consent for the use and disclosure of records for civil, criminal, administrative, or legislative proceedings with consent for any other use or disclosure.
- Requires that each disclosure made with patient consent include either a copy of the consent or a clear explanation of its scope.
- Creates a new definition for SUD clinician notes that analyze conversations during SUD counseling sessions. These notes must be voluntarily maintained separately from the patient’s treatment and medical record, require specific patient consent, and cannot be used or disclosed under a broad TPO consent.
For more specifics, please refer to the FAQ from the Department of Health and Human Services, click here.
What Has Not Changed in Part 2?
- As has always been the case under Part 2, patients’ SUD treatment records cannot be used to investigate or prosecute the patient without written patient consent or a court order.
- Records obtained in an audit or evaluation of a Part 2 program cannot be used to investigate or prosecute patients without written consent or a court order that meets Part 2 requirements.
Timeframe to Follow:
- Amendments apply to plan years on or after February 16, 2026.
- SMM Distribution to Plan Participants is 210 after the end of the Plan year.
- If the end of the Plan year is 12/31/26, the SMM must be distributed by July 29, 2027. Â
What to Do:
For those who have Wrangle’s Wrap Plan Document, the amendment and SMM templates have been provided via our ERISA Desk Platform under the Legislative Amendments tab. (An email informing of the available amendment and SMM was sent on Feb. 13th)
For all others, please contact the preparer of your Wrap Plan Document for further information and instructions.
How to Convey This Change to the Participants
When the SMM is issued, participants of your group’s employee benefit plan should be informed of provisions now in place to ensure enhanced privacy and confidentiality requirements applicable to Substance Use Disorder and your privacy rights under HIPAA.
If you should have any questions, please reach out to ERISADeskInfo@ascensus.com.
2026 HIPAA Notice of Privacy Practices (NOPP)
Click here for HHS site with templates.
2026 HIPAA NOPP Delivery Instructions:
Employers should consult their carriers and TPAs to determine which entity will deliver the updated NOPP by April 16, 2026.
| Requirement | Deadline | Delivery Method Allowed |
| Update NOPP for SUD/Part 2 changes | February 16, 2026 | N/A |
| Deliver updated paper NOPP | April 16, 2026, or within 60 days of making the change if completed before February 16, 2026 | Paper or electronic |
| If NOPP is posted online | Post by February 16, 2026, AND include in next annual enrollment materials | Web posting and paper (annual) or electronic notice |
| New participants | At enrollment (starting February 16, 2026) | Paper or electronic |
HIPAA Electronic Delivery Rules
- Participants must agree to electronic delivery.
- Website posting is required if the plan has a customer-facing site.
- Electronic delivery must ensure actual receipt.
- Participants may request a paper copy anytime.
- Electronic formatting must preserve required content.
- Annual reminders may be electronic with consent.
- A group health plan must ensure actual receipt.
If you should have any questions, please reach out to ERISADeskInfo@ascensus.com.