The Patient Protection and Affordable Care Act (PPACA) requires health plans and health insurance issuers to provide a summary of benefits and coverage (SBC) to applicants and enrollees. The SBC is intended to be a concise explanation of important health plan information. Its purpose is to help consumers better understand their coverage options. The SBC requirement applies to both non-grandfathered and grandfathered plans.

In addition, PPACA requires plans and issuers to keep the SBC up-to-date by giving at least 60 days' advance notice of certain changes to their plans. Changes that must be disclosed are material modifications in plan terms or coverage that would affect the content of the SBC and are not reflected in the most recent SBC. Because the 60-day notice rule is part of the SBC requirement, it becomes effective when plans and issuers must start providing the SBC.