Health & Welfare Plans Newsletter

October 2, 2014

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Employee Benefits Jobs

Defined Contribution Plan Analyst (140000XF)
Transamerica
in OH

Business Operations Director - Retirement Services Operations
MassMutual Financial Group
in ANY STATE

Actuarial Analyst
USI Consulting Group
in CT

Client Account Coordinator
USI Consulting Group
in NY

Sales Consultant for Retirement Software
ftwilliam.com Sales - Wolters Kluwer Law & Business
in ANY STATE

Senior Account Manager
Ohio National Financial Services
in OH

ESOP Administrator
Blue Ridge ESOP Associates
in ANY STATE

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Webcasts and Conferences

Measuring Health Insurance Coverage: Improvements and New Opportunities in the Current Population Survey
September 17, 2014 WEBCAST
(AcademyHealth)

Automate Your Census Collection & More with ASC’s Gemini Web Portal
October 6, 2014 WEBCAST
(ASC)

ACA “ABCs” for 50-99 Employee Companies
October 9, 2014 WEBCAST
(National Association of Professional Employer Organizations [NAPEO])

Defined Benefit Plan Trends in Today's Health Care Market
October 9, 2014 WEBCAST
(American Hospital Association [AHA])

Reinsurance Contribution Submission Process User Group Series
October 15, 2014 WEBCAST
(Centers for Medicare & Medicaid Services [CMS])

Qualified Plan Participant Disclosures: The Good, The Bad and The Ugly
October 16, 2014 WEBCAST
(ASPPA [American Society of Pension Professionals & Actuaries])

Reinsurance Contribution Submission Process User Group Series
October 21, 2014 WEBCAST
(Centers for Medicare & Medicaid Services [CMS])

Meeting Today’s Challenges for 401(k) Sponsors
October 22, 2014 WEBCAST
(Mercer)

Reinsurance Contribution Submission Process User Group Series
October 22, 2014 WEBCAST
(Centers for Medicare & Medicaid Services [CMS])

Health Plans – Plan Sponsor Readiness Check-Up for 2015
October 23, 2014 WEBCAST
(Drinker Biddle & Reath LLP)

Reinsurance Contribution Submission Process User Group Series
October 28, 2014 WEBCAST
(Centers for Medicare & Medicaid Services [CMS])

On-site Retirement Plan Specialists
October 28, 2014 WEBCAST
(American Hospital Association [AHA])

Reinsurance Contribution Submission Process User Group Series
October 29, 2014 WEBCAST
(Centers for Medicare & Medicaid Services [CMS])

The Impact of Mergers and Acquisitions on Retirement
November 4, 2014 WEBCAST
(American Hospital Association [AHA])

Reinsurance Contribution Submission Process User Group Series
November 4, 2014 WEBCAST
(Centers for Medicare & Medicaid Services [CMS])

Reinsurance Contribution Submission Process User Group Series
November 5, 2014 WEBCAST
(Centers for Medicare & Medicaid Services [CMS])

Reinsurance Contribution Submission Process User Group Series
November 10, 2014 WEBCAST
(Centers for Medicare & Medicaid Services [CMS])

Reinsurance Contribution Submission Process User Group Series
November 12, 2014 WEBCAST
(Centers for Medicare & Medicaid Services [CMS])

Reinsurance Contribution Submission Process User Group Series
November 14, 2014 WEBCAST
(Centers for Medicare & Medicaid Services [CMS])

View All Webcasts and Conferences



[Guidance Overview]

Looming Deadline for Another ACA Fee: November 15, 2014
"Notably, although this provision provides some relief from the [transitional reinsurance fee], some plan sponsors may find that the necessary information to determine whether a plan is supplementary or secondary is not readily available to the plan sponsor. Therefore, to the extent this rule would be expensive or impracticable to administer, the plan sponsor may decide to pay the fee on behalf of an individual regardless of whether another contributing entity may actually be responsible for making the contribution." (Miller & Chevalier)  


[Advert.]

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Sponsored by IPMG [Insurance Program Managers Group]

Explore the advantages of a Self-Funded Health Plan! By bringing together cutting edge cost containment strategies, excellent service and outstanding resources, IPMG's EBS division can help you make a difference for your plan.



[Guidance Overview]

New CMS Guidance as HPID Deadline Approaches
"Unfortunately, the HPID application system appears to have been developed with health insurers in mind, resulting in confusion for sponsors of self-funded plans. Until recently, it had been rumored that [CMS] intended to modify the system to accommodate self-funded plan sponsors or even to exempt such plans from the process. With just over a month until the deadline for large plans, it does not appear that such an exemption is forthcoming." (Seyfarth Shaw LLP)  

[Guidance Overview]

HIPAA Requires Many Health Plans to Obtain a Health Plan Identifier by November 5, 2014
"The deadline for health plans, except 'small' plans, is November 5, 2014. The deadline for 'small' health plans, defined as plans with $5 million or less in annual receipts, is November 5, 2015. Beginning November 7, 2016, all covered entities must use an HPID whenever a covered entity identifies a health plan that has an HPID in a standard electronic transaction. If a covered entity uses a business associate to conduct standard electronic transactions on its behalf, it must require its business associate to use the HPID to identify a health plan that has an HPID during these transactions." (Snell & Wilmer)  

[Guidance Overview]

HIPAA Audit Program Phase 2 Update (PDF)
"Take advantage of the delay in Phase 2 of the Audit Program to address and enhance compliance with the requirements of the Privacy, Security and Breach Notification Rules. Make sure to have conducted and/or updated a comprehensive Security Rule risk assessment. Take the Audit Program seriously -- HIPAA audits may be used as an enforcement tool.... OCR, with the new web portal and possibly some additional funding, is planning to conduct more on-site, comprehensive audits (including audits of business associates) than previously planned and may conduct many fewer desk audits." (Alston & Bird LLP)  

[Guidance Overview]

The ACA and Adjunct Faculty: What Happens When 'Hours of Service' Are Not Easily Counted?
"Adjunct faculty members are compensated not based on tracked hours worked, but on the number of classes or credit hours taught. Must an employer count non-classroom hours (office hours, preparation time, faculty meetings and so forth) towards an adjunct's 'hours of service' and, if so, what non-classroom hours must be counted? In the IRS's proposed employer shared responsibility regulations, the IRS recognized this conundrum but did not provide a definitive solution." (Mintz Levin)  


[Advert.]

NBCH 19th Annual Conference -- November 10-12, 2014 - Washington, DC

Sponsored by National Business Coalition on Health [NBCH]

Employers, health plans, providers and other key stakeholders focus on improving health outcomes, lowering cost by benefit design, care management, payment reform, and reducing waste. Free admission for employers that are members of an NBCH coalition. Join us.



[Guidance Overview]

Time to Get Serious About the ACA's Employer Reporting Requirements
"[T]he employer mandate reporting will be a two-step process: [1] reporting to the employee by January 31 of the following year; and [2] reporting to the IRS by March 31 of the following year (or February 28 if filing by paper).... Even though reporting will first be required in early 2016, you will need to start capturing the needed data beginning in January 2015." (McAfee & Taft)  

Divided Sixth Circuit Rules That ERISA Bars Wisconsin Law on Maternity Leave
"The Wisconsin Family and Medical Leave Act (WFMLA) requires all employers to give their employees six weeks of unpaid leave following childbirth. The Sixth Circuit was asked to consider the law's 'substitution provision,' which forces employers to allow the substitution of unpaid leave provided by the law with paid leave under their [ERISA]-governed disability plan, if they have one. Writing for the majority, Judge Raymond M. Kethledge found this provision to be preempted by ERISA because it forced plan administrators to award disability benefits 'to certain beneficiaries who undisputedly are not short-term disabled as defined by the plan.'" [Sherfel v. Newson, No. 12-4285 (6th Cir. Sept. 30, 2014)] (Bloomberg BNA)  

Treasury Guidance Plan Indicates Focus on Employer-Provided Meals as Audit Activity Continues
"[F]ree or discounted meals provided to employees through an employer-operated eating facility are fully excludable from employees' wages ... and fully deductible ... if at least half of the meals provided are excludable under section 119. The trend toward healthier and more expensive dining options has drawn increasing interest from the IRS as this interplay creates the potential for substantial amounts of -- what the IRS alleges is -- additional compensation that is both deductible by the employer and nontaxable to the employees. The appearance of an item on Treasury's most recent Priority Guidance Plan clearly signals the IRS's decision to counter employers' position that free and discounted meals do not constitute additional wages for payroll tax purposes." (Miller & Chevalier)  

HHS Is Hiding Health Insurance Rate Hikes, Former Official Charges
"States are generally charged with reviewing health insurers' proposed rate increases, but HHS conducts reviews for several states that don't have an effective review program.... [T]he department still hasn't made any of the filings for 2015 health plans public, according to the lawsuit from Mehri & Skalet attorney Jay Angoff, who used to oversee ACA implementation for HHS.... The new lawsuit ... comes after HHS didn't promptly respond to an Aug. 20 Freedom of Information Act request to disclose the rate filings. It also comes after HHS ignored an April plea from dozens of national and state consumer organizations to make the rate filing information public." (The Washington Post; subscription may be required)  

Benefits in General; Executive Compensation

Specific Power of Attorney Needed for Firm's Employees to Dispute Tax Issues Under Circular 230 (PDF)
"Companies that want specific employees to advocate, negotiate or dispute issues with the Internal Revenue Service must provide a Form 2848, Power of Attorney, for that employee, the IRS Office of Professional Responsibility said in new Circular 230 guidance.... Form 2848 must be signed by a duly elected officer or director of the corporation. 'Vanity-titled' corporate officers aren't legally authorized to execute a power of attorney, the IRS said." (Internal Revenue Service [IRS])  

Contractual Time Limitations for Filing ERISA Civil Actions: Why You May Want to Add These Provisions to Your Benefit Claim Denial Letters
"[T]he Moyer decision does not necessarily suggest a changing of the tide on the issue, but does indicate that the Sixth Circuit takes seriously the need to communicate these provisions to participants in at least some manner other than simply including them in the plan document. It is important to note here that the summary plan description for the plan at issue in Moyer did not include the plan-based limitations period for filing a civil action." [Moyer v. Metropolitan Life Ins. Co., No. 13-1396 (6th Cir. Aug. 7, 2014)] (Porter Wright Morris & Arthur LLP)  

DOL Proposal Would Require Electronic Filing of Top Hat Plan Notices
"The [DOL] has proposed to require so-called 'top hat plan notices' to be filed electronically instead of on paper. In so doing, the DOL would move the mechanics of this often-overlooked task into the 21st century. Unfortunately, the proposal does not address certain ambiguities involving the notice that have persisted for the last 40 years." (Dentons)  

2014 ISS Policy Survey Results (PDF)
"A majority of investors (i.e., 60%) expressed concern about the magnitude of CEO pay and how it is determined, even when company performance is strong (e. g., outperforms peer group). Investors who support CEO compensation limits favor, in descending preference, comparisons of CEO pay to median CEO pay at peer companies, the pay of other named executive officers in the proxy statement, or as a percent of corporate earnings or revenue. Unsurprisingly, only a minority of corporate issuers (i.e., 28%) support limits on CEO pay." (Frederic W. Cook & Co., Inc.)  

Press Releases

CalPERS Statement: Bankruptcy Court Ruling on Stockton Pensions is Not Legally Binding
CalPERS [California Public Employees' Retirement System]

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