Health & Welfare Plans Newsletter

October 8, 2014

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Employee Benefits Jobs

Pension Analyst
USI Consulting Group
in CT

Retirement Plan Conversion Specialist and Plan Analyst
Retirement Planning Services
in CO

Client Relationship Manager
The Newport Group
in CA, FL, IL, VA

401k Consultant
USI Consulting Group
in CT

Attorney
McKain Law, PLLC
in NY

DC Plan Administrator
Edberg & Perry
in AZ

Account Manager - Group Business
MassMutual Financial Group
in MA

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Webcasts and Conferences

Health Insurance Premium Tax Credit for Tax Year 2014 – What You Need to Know - Recorded
July 15, 2014 WEBCAST
(IRS [Internal Revenue Service])

Key Circular 230 Provisions: What Every Tax Return Preparer Needs to Know - Recorded
July 15, 2014 WEBCAST
(IRS [Internal Revenue Service])

Defined Benefit Plan Terminations - Recorded
August 14, 2014 WEBCAST
(IRS [Internal Revenue Service])

Helping 501(c)(3) Organizations with Charitable Contributions (a primer)
October 23, 2014 WEBCAST
(IRS [Internal Revenue Service])

A Clear Path Forward: Paving the Way for Value Based Partnerships in Healthcare
October 28, 2014 WEBCAST
(Healthcare Web Summit)

Health Care Delivery 2015: Outside the Box? Strategies... Consumerism... Transparency... Delivery... Payment...
November 5, 2014 in FL
(Florida Hospital Association)

Getting the Most for Your Money: Auditing Your Employee Benefits Program
November 6, 2014 WEBCAST
(Lorman Education Services)

Managing FMLA Red Flags and Staying Ahead of the Trends
November 13, 2014 WEBCAST
(Franczek Radelet PC)

View All Webcasts and Conferences



[Guidance Overview]

Medicare Part D Notice Required Before October 15
"This notice informs participants whether the prescription drug coverage offered under your health plan constitutes creditable or non-creditable coverage. As the Medicare Part D annual enrollment period now runs from October 15 to December 7, you must distribute the notices before October 15." (Warner Norcross & Judd LLP)  


[Advert.]

Set Yourself Apart From Your Peers With the CEBS Designation

Sponsored by International Foundation of Employee Benefit Plans [IFEBP]

Co-sponsored by the International Foundation of Employee Benefit Plans and the Wharton School of the University of Pennsylvania, the CEBS designation gives you the knowledge and confidence to succeed in today's business environment. Learn More!



[Guidance Overview]

Deadline for Health Plans to Acquire Unique Health Plan Identifier Fast Approaching
"The definition of a [covered health plan (CHP)] raises many questions as to how it applies in a particular situation. For example, is the control merely potential control or actual control? What if there is control of some activities and actions but no control over others? Is a different HPID needed for each [subhealth plan (SHP)]? It does appear that there can be some flexibility allowed under the regulation, i.e., a CHP can have one or multiple HPIDs for employer sponsored plans with SHPs." (Cheiron)  

[Guidance Overview]

Faculty Evaluations: The ACA's Effect on Higher Education
"Most schools have very small full-time staffs. Many departments rely on adjunct faculty, individuals who come in on a contract basis and teach on an as-needed basis -- perhaps one or two classes in the fall, then possibly none in the winter, and then maybe one in the spring. They're not usually on the payroll, and they're not usually considered full-time employees. But in the calculus of the ACA, many of them could now be considered full-time equivalent employees, depending on how many hours they work." (Moss Adams LLP)  

[Guidance Overview]

Final Regs Address Limited-Scope Vision and Dental Benefits and EAPs (PDF)
"[T]hese final regulations do not require limited-scope vision or dental benefits to be offered in connection with (but with a separate election from) major medical group health plan coverage to avoid being considered an 'integral part of the group health plan.' This clears up some uncertainty. Stand-alone, limited-scope vision or dental plans -- whether insured or self-insured -- can be excepted benefits even when the employer maintains no other medical plan coverage" (Buck Consultants at Xerox)  

[Guidance Overview]

IRS Allows Two New Mid-Year Cafeteria Plan Election Changes (PDF)
"Generally, losing eligibility under the plan is a cornerstone requirement of the election change rules applicable to change-in-status events. However, if this event occurs and the additional elements ... are satisfied, [IRS Notice 2014-55] will allow an election change in this particular situation even though eligibility under the plan has not been lost." (Alston & Bird LLP)  


[Advert.]

24th Annual National Health Benefits Conference & Expo (HBCE)

Sponsored by HBCE

Plan now to attend the National Health Benefits Conference & Expo, January 27-28 in Clearwater Beach, Florida. The conference provides cutting-edge case studies and advanced cost control strategies presented by national thought leaders. Register Now!



Quirky FMLA Counting Rules: Light Duty
"[W]hen an employer offers, and an employee voluntarily accepts, a light duty assignment, the time spent working in the light duty assignment is not counted against the employee's 12-week FMLA entitlement. After all, the employee is working, not on leave. Nonetheless -- and here's the catch -- during the period that the employee is working in the light duty position, the employee remains protected by the reemployment rights under FMLA." (Benefits Bryan Cave)  

A Court's Review of a Disability Benefit Claim May Hinge on the Meaning 'Satisfactory to Us'
"Whether a court reviews a benefit claim denial (i) de novo, thus empowering the court to substitute its own judgment for that of the plan fiduciary, or (ii) under the highly deferential arbitrary and capricious standard of review, can sometimes be outcome determinative. This article sheds some light on the reasoning behind each view and suggests steps that plan drafters can take to better ensure that claim denials are subject to deferential review by the courts." (Proskauer's ERISA Practice Center)  

Taking an Unconventional Approach to Wellness Planning
"In tracing the wellness success story of Elkay Manufacturing -- whose wellness program saw a 76% reduction in major health issues among staff most likely to incur substantial health care costs, not to mention a projected increase in 2015 health care premiums limited to just 1.8% -- some of the secret may lie in the unconventional approach taken by the company's wellness champion." (Employee Benefit News)  

[Opinion]

Tens of Thousands of Walmart Workers Are About to Lose Their Health Insurance -- and It's Good News!
"There are obvious benefits to getting health insurance at work. For one, employer-sponsored insurance is not taxed ... Individual market plans, meanwhile, are purchased with post-tax dollars.... But for low-wage workers, Obamacare has introduced a new and big drawback to the employer insurance. Namely, anybody who gets access to affordable coverage at work is barred from getting subsidies through the new exchanges. This is even true for people who don't buy insurance at work; just the act of getting offered employer coverage blocks individuals from using getting financial help. That financial help can be a big deal for those with lower incomes." (Vox)  

Benefits in General; Executive Compensation

Potential for Criminal Liability for ERISA Disclosure or Reporting Violations (PDF)
"Violating these disclosure and reporting obligations, or the obligation to retain records necessary to verify information on annual reports, could lead to criminal liability under Section 501 of ERISA or under 18 U.S.C. Section 1027. Although these statutory provisions use the terms 'willfully' and 'knowingly' in describing the prohibited conduct, an employer could be convicted of violating these provisions without having intended to engage in criminal conduct.... This article describes some of the courts of appeals cases that have interpreted these statutes." (Groom Law Group)  

Stock Compensation: 2014 Assumption and Disclosure Study
"Compared to prior year data, stock awards continued to outpace options when looking at the value of grants reported for 2013. Large companies and high techs still issue options, but even then less in quantity compared to stock awards for both groups of companies. Option valuations are reflecting lower volatilities as we move further from the last recession, but expected term has not shortened for either group. And stock compensation expense continues to pace at the 3%-4% range for large companies, and much higher for high techs." (PricewaterhouseCoopers)  

Press Releases

Redhawk Wealth Advisors Launches Fiduciaryk
Redhawk Wealth Advisors, Inc.

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