Health & Welfare Plans Newsletter

March 2, 2015

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Employee Benefits Jobs

Account Manager
National Retirement Services, Inc.
in NC

Compliance Analyst
National Retirement Services, Inc.
in NC

Pension Administrator
Retirement Strategies, Inc.
in GA

Retirement Plan Administrator
HCS Retirement Services
in UT

Defined Contribution Plan Administrator
Tyler, Simms & St. Sauveur, CPAs, P.C.
in NH

Pension Administrator
Alliance Pension Consultants, LLC
in IL

Defined Contribution Pension Administrator
Pension Investors Corporation of Orlando, Inc.
in FL

Director - Retirement Planning
Granite Retirement Services, LLC
in NY

Director of Communications
Non-Profit Association
in DC

Retirement Plan Administrator
David K. Young Consulting, LLC
in TX

Account Manager, Employee Benefit Services
Healthcare Association of New York State
in NY

Retirement Planning Business Development Officer
Chemical Bank
in MI

Conversion Consultant
Verisight
in CA

Relationship Manager
Verisight
in CA, IL

Account Service Representative
Verisight
in CA, IL

ESOP Administrator
Blue Ridge ESOP Associates
in ANY STATE

Client Relationship Manager
Acropolis Investment Management, LLC
in MO

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Webcasts and Conferences

How to Apply for a 403(b) Plan Opinion or Advisory Letter
RECORDED
(IRS [Internal Revenue Service])

Retirement Plan Issues for U.S. Territories - Puerto Rico
RECORDED
(IRS [Internal Revenue Service])

Managing Leaves of Absence: The Interplay of the FMLA and ADA
March 3, 2015 in NY
(Littler Mendelson)

Affordable Care Act’s Employer Mandate: 2015 Best Practices
March 3, 2015 WEBCAST
(Bloomberg BNA)

Employer-Only Roundtable: Designing Your Benefit Strategies for 2016-2018
March 6, 2015 in IL
(Midwest Business Group on Health)

401(k) Advisor Symposium
March 26, 2015 in FL
(401k Rekon)

Getting It Right - Know Your Fiduciary Responsibilities: Part 2: Basic Fiduciary Responsibilities for Employer-Sponsored Retirement Plans
March 18, 2018 WEBCAST
(Employee Benefits Security Administration [EBSA], U.S. Department of Labor)

View All Webcasts and Conferences



[Guidance Overview]

What's Next for the ACA: Information Reporting
"If employees ask you for a statement reporting MEC in connection with 2014 coverage, you are NOT required to report such information. The IRS has published guidance concerning how employees can confirm MEC in 2014.... For 2015, the deadline is February 1, 2016, as January 31 falls on a Sunday." (Jackson Lewis P.C.)  


[Advert.]

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With a user-friendly website, daily emails, and regular web briefings, Mercer Select members stay informed about health, retirement, and other key benefit, comp and HR issues. Register for a free web briefing on ACA play-or-pay and MEC reporting on Mar. 12 at 1 pm ET.



[Guidance Overview]

FMLA Regs Redefine 'Spouse'
"The DOL clarified that to confirm a family relationship, a 'simple statement' is all that may be required, and an employee has the option to provide a simple statement as opposed to some other form of documentation. The employer can request the statement in writing. The DOL also makes clear that this rule applies to all types of requests for documentation related to family relationships, not simply spouses. Finally, the DOL notes that if documentation of a spousal relationship has already been requested for another purpose, such as health benefits, an employer should not request the documentation again." (Morgan Lewis)  

[Guidance Overview]

DOL Extends FMLA Rights to Same-Sex Spouses (PDF)
"The change to a place of celebration rule has implications beyond spousal leave.... [An] eligible employee would be entitled to FMLA leave to care for the child of a same-sex spouse regardless of whether the employee satisfies the in loco parentis requirement of providing day-to-day care or financial support for the child. An eligible employee would also be entitled to leave to care for a parent's same-sex spouse, whether or not the stepparent ever stood in loco parentis to the employee." (Buck Consultants at Xerox)  

[Guidance Overview]

HHS Sets Reinsurance Fee for 2016, Issues Standards for Cost-Sharing and SHOP Administration
"The annual contribution amount for the transitional reinsurance program is set at $27 per enrollee for 2016 (compared to $44 per enrollee for 2015). The fees, which fund reinsurance in the individual market for 2014 through 2016, are generally assessed on all health insurers and self-insured group health plans (regardless of size) providing major medical coverage." (Thomson Reuters / EBIA)  

[Guidance Overview]

IRS Gets Rolling on Cadillac Tax
"The Notice touches on numerous facets of the tax and provides an initial implementation roadmap; interested parties will want to read it carefully and consider submitting comments to inform the IRS's rulemaking process. Of separate interest to sponsors and administrators of self-insured plans and HRAs is the potential for long-awaited guidance on determining COBRA premiums." (Thomson Reuters / EBIA)  

Eighth Circuit Finds Group Life Insurer Potentially Liable for Enrollment Mistakes of Employer
"[T]he Eighth Circuit joined a number of other circuits in recognizing equitable remedies of reformation and surcharge based on a breach of fiduciary duty under ERISA. The claim for supplemental life insurance benefits under the employer's group policy was denied because the employee failed to submit evidence of insurability as required under the plan. However, in concluding that the plan insurer breached its fiduciary duties, the court relied primarily on the actions and omissions of the employer.... [T]he court seemed to hold MetLife responsible for the employer's failure to provide a summary plan description.... [It] was also the employer's responsibility to properly enroll individuals. If the employer did so improperly, this should not be a basis for imposing liability on MetLife." [Silva v. Metropolitan Life Ins., No. 13-2233 (8th Cir. Aug. 7, 2014)] (Wilson Elser)  

The Aftermath of Hobby Lobby: HSAs and HRAs as the Least Restrictive Means
"An HSA or HRA permits the covered employee to spend employer-provided, pre-tax health care dollars on any medical service the employee chooses without implicating the employer in the employee's spending decision. The HSA/HRA alternative respects the religious rights of sponsoring employers since, unlike conventional insurance or self-insured health plans, the sponsoring employer's plan does not provide a menu of choices which frames the employees' decisions." (Prof. Edward A. Zelinsky, via SSRN)  

Insurance Commissioners Call for Multi-State Security Examination of Anthem Breach
"Some originally questioned whether Anthem's breach implicated HIPAA because no direct medical information was included in the compromised data.... [T]he definition of PHI is broad enough to include individually identifiable information such as names and addresses held by a covered entity, even if diagnostic or treatment information is not included. And Anthem appears to be treating the disclosed information as PHI (that was not encrypted) ... Who has the obligation to notify will vary, depending on whether Anthem was acting as a health insurer or a TPA with respect to an employer health plan." (Thomson Reuters / EBIA)  

Fines Remain Rare Even As Health Data Breaches Multiply
"Since October 2009, health care providers and organizations (including third parties that do business with them) have reported more than 1,140 large breaches to the Office for Civil Rights, affecting upward of 41 million people. They've also reported more than 120,000 smaller lapses, each affecting fewer than 500 people.... Yet, over that time span, the Office for Civil Rights has fined health care organizations just 22 times." (National Public Radio)  

NHeLP's Health Reform Litigation Docket
A list of cases including progression and status. Includes links to selected filings and court documents. (National Health Law Program [NHeLP])  

It's March 2015 and the DOL's Model FMLA Forms Just Expired. Now What?
"It's anyone's guess as to when new FMLA forms will be issued, so in the meantime ... Should employers continue to use the expired FMLA forms? Yes, for two reasons: [1] This past week, OMB extended the FMLA forms' expiration date by 30 days to March 31, 2015 (so, I guess you could say that the forms are no longer expired, right?); and [2] in my discussions with the agency, the DOL has advised me that the best approach is for employers to continue to use the forms even after the expiration date and until further notice." (FMLA Insights)  

Republican Senators: 'We Have a Plan for Fixing Health Care'
"Republicans have a plan to create a bridge away from Obamacare. First and most important: We would provide financial assistance to help Americans keep the coverage they picked for a transitional period. It would be unfair to allow families to lose their coverage, particularly in the middle of the year.... Second, we will give states the freedom and flexibility to create better, more competitive health insurance markets offering more options and different choices" (U.S. Senate Committee on Finance)  

Benefits in General; Executive Compensation

SEC Proposes Disclosure Rules for Hedging Transactions by Directors, Officers, and Employees
"Interestingly, the SEC did not confine its Proposed Rules to executive officers and directors. Nor does the proposal relate only to transactions that hedge against equity-based awards. In addition to directors and officers, the Proposed Rules extend to all employees, who may own very small portions of the company. The Proposed Rules also include any hedging transaction that affects these individuals' stock awards or direct stock ownership of the company's securities (or those of any parent or subsidiaries)[.]" (Paul Hastings LLP)  

Press Releases

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David Rhett Baker, J.D., Editor and Publisher
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