Patient Protection and Affordable Care Act

Client Alert: More Changes to the Summary of Benefits & Coverage (SBC)

Plan sponsors have work to do on their summary of benefits and coverage (“SBC”) in the coming months. The government recently published proposed regulations related to the Patient Protection and Affordable Care Act’s (“PPACA”) SBC requirement. The proposed regulations would modify the 2012 final regulations and are intended to streamline and shorten the SBC in order to make it more useful and user-friendly to individuals, issuers, and group health plans.

The proposed regulations also incorporate a number of clarifying FAQs released by the government after the adoption of the 2012 final regulations. In conjunction with the release of the proposed regulations, the government contemporaneously made available proposed revisions to the SBC template, Continue reading Client Alert: More Changes to the Summary of Benefits & Coverage (SBC)

Client Alert: Cadillac Tax on High Cost Employer Health Plans Approaching

The Internal Revenue Service (IRS) recently issued Notice 2015-16 commencing the regulatory process to develop guidance on what’s been called the Cadillac Tax, i.e., the excise tax on high cost employer-sponsored health coverage.

Employers and plan sponsors, especially those with negotiated collective bargaining agreements, need to start actively planning now to mitigate exposure to the Patient Protection and Affordable Care Act’s (“PPACA”) Cadillac Tax under Code section 4980I, which is scheduled to go into effect for taxable years beginning on or after January 1, 2018. Continue reading Client Alert: Cadillac Tax on High Cost Employer Health Plans Approaching

Client Alert and Reminder: Form W-2 Reporting Due, Disclosure Due to CMS for Medicare Part D

Reminder: Form W-2 Reporting on Aggregate Cost of Employer Sponsored Coverage

Unless subject to an exemption, employers must report the aggregate cost of employer-sponsored health coverage provided in 2014 on their employees’ Form W-2 (Code DD in Box 12) issued in January 2015. Please see IRS Notice 2012-9 and our previous e-mail alerts for more information.

For a helpful IRS link that includes a chart setting forth various types of coverage and whether reporting is required, click here. Please note this is a summary only and Notice 2012-9 should also be consulted. Continue reading Client Alert and Reminder: Form W-2 Reporting Due, Disclosure Due to CMS for Medicare Part D

Correcting Mistakes in Retirement Plan Administration

Retirement plans are subject to a very complex web of regulations governing their administration, and mistakes inevitably happen, even in the best-run plans. Recently, Brian Gallagher presented to Plante Moran on the various programs available for correcting such errors.

You can view the presentation here.

If your organization would be interested in a similar presentation, or if you have questions about correcting errors involving your own retirement plan, please contact Fraser Trebilcock Employee Benefits Attorney Brian Gallagher at 517.377.0886 or bgallagher@fraserlawfirm.com.

2014 Year-End Employee Benefit Plan Food for Thought

As the year winds down, it’s important to take stock of plan amendment and notice deadlines, as well as planning for 2015. To guide you through the process, we’ve put together a list that includes all of our Employee Benefit Client Alerts from 2014 as well as other food for thought.

Consider Cafeteria Plan Amendments:

1. 1. Ensure that the $2,500 cap on salary reductions for Health Flexible Spending Accounts (FSAs) is documented in the FSA/cafeteria plan documents by December 31, 2014 (went into effect in 2013, required in plan documents by December 31, 2014). Continue reading 2014 Year-End Employee Benefit Plan Food for Thought

Deadline Approaching for Employer Compliance with Pay or Play: Cash Outs and Affordability (New Guidance)

Unless transition relief applies, applicable large employers must comply with the Employer Shared Responsibility Mandate (i.e., Pay or Play) effective January 1, 2015. Under Pay or Play, applicable large employers are required, among other things, to offer affordable medical coverage which provides minimum value to their full-time employees. Although numerous guidance exists regarding determining whether coverage offered is affordable, this Client Alert focuses on the impact of cashable credits offered under a section 125 cafeteria plan.

Continue reading Deadline Approaching for Employer Compliance with Pay or Play: Cash Outs and Affordability (New Guidance)

Client Alert: HIPAA HPID Deadline Delayed until Further Notice

On the eve of the HPID November 5, 2014 deadline, CMS announced that enforcement of the HPID requirements is delayed, until further notice.

“Effective October 31, 2014, the Centers for Medicare & Medicaid Services (CMS) Office of e-Health Standards and Services (OESS), the division of the Department of Health & Human Services (HHS) that is responsible for enforcement of compliance with the Health Insurance Portability and Accountability Act of 1996 (HIPAA) standard transactions, code sets, unique identifiers and operating rules, announces a delay, until further notice, in enforcement of 45 CFR 162, Subpart E,

Continue reading Client Alert: HIPAA HPID Deadline Delayed until Further Notice

October 15: Medicare Part D Notice of Creditable (or Non-Creditable) Coverage

Medicare Part D notices (of either creditable or non-creditable coverage) are due for distribution prior to October 15th.

As you know, if you as an employer offer prescription coverage to any Medicare Part D eligible employees (whether or not retired), or Medicare Part D Medicare-eligible spouses or dependents, you must provide those individuals with a Notice of Creditable or Non-Creditable Coverage to advise them whether your drug plan’s total gross value is at least as valuable as the standard Part D coverage (i.e., creditable). Medicare Part D notices must be provided to Medicare-eligible individuals prior to October 15th of each year.

Continue reading October 15: Medicare Part D Notice of Creditable (or Non-Creditable) Coverage

Client Alert: IRS Releases Draft Instructions and Q&As re: Employer Information Reporting Requirements under the ACA

The IRS has recently released draft instructions to the employer reporting drafted forms released over a month ago.
Continue reading Client Alert: IRS Releases Draft Instructions and Q&As re: Employer Information Reporting Requirements under the ACA

Health Care Reform: Where Do We Go From Here?

Over the past year, health care reform has been the top of everyone’s “hot topic list.” Now that the rollout and implementation are in process, where do we go from here?

Continue reading Health Care Reform: Where Do We Go From Here?