Health & Welfare Plans Newsletter

October 7, 2015

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Employee Benefits Jobs

Account Manager
National Retirement Services, Inc.
in CA

Relationship Manager
John Hancock Retirement Plan Services
in GA

Retirement Education Specialist
The Newport Group
in NC

Manager, Plan Compliance Risk Oversight
TIAA CREF
in CO, NC

Actuarial Analyst
The Segal Group
in CA

Retirement Plan Consultant
BPAS [Benefit Plans Administrative Services]
in PA

Senior Benefits Analyst (Health)
The Segal Group
in AZ

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Webcasts and Conferences

Learn How to Avoid the #1 Error Found in IRS Audits!
October 8, 2015 WEBCAST
(ASC Institute)

Effectively Handling Leave & Accommodation Issues Under the ADA
October 21, 2015 in VA
(Littler Mendelson)

Welfare Plan Issues for Same-Sex Married Couples: The Impact of Windsor and Obergefell
October 23, 2015 WEBCAST
(Western Pension & Benefits Council)

Serving as an Internal ESOP Fiduciary: Essential Knowledge and Skills
November 3, 2015 WEBCAST
(National Center for Employee Ownership [NCEO])

Controlling Health Care Costs With Self-Funded Plan Options
December 14, 2015 WEBCAST
(Lorman Education Services)

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[Guidance Overview]

IRS Health Care Tax Tip 2015-62: Reporting Requirements for Applicable Large Employers
"If you're an ALE, you report information about health coverage you offered to each full-time employee, or to show that you didn't offer coverage to the full-time employee. This information will help the IRS determine whether an employer shared responsibility payment applies to your organization and is also used in determining the eligibility of employees for the premium tax credit. Here are some key points about the information reporting requirements under the health care law[.]" (Internal Revenue Service [IRS])  


[Advert.]

Just Updated!—FMLA E-Learning Course

Sponsored by International Foundation of Employee Benefit Plans [IFEBP]

The FMLA e-learning course has been completely redesigned with four hours of the latest compliance and implementation strategies to help ensure your policies are current with today's FMLA regulations -- Great for training your staff. Enroll Today!



[Guidance Overview]

Understanding Costs and Benefits: Other Postemployment Benefits (PDF)
6 pages. "This document summarizes how the GASB assessed the expected costs and benefits of its new OPEB standards. This document also outlines the process that led the GASB to conclude that the expected benefits of the new standards justify the costs.... The GASB specifically considered the relative expected costs and benefits using information gathered from the research performed and stakeholder feedback obtained during this project ... Ultimately, the GASB concluded that the costs of implementing the new OPEB standards are justified by the improved usefulness and enhanced value of information that will be provided." (Governmental Accounting Standards Board [GASB])  

[Guidance Overview]

Excluding Certain Classes of Employees from Your Health Plan May Increase Risk of Penalty
"Whether you use the month-to-month method or the look-back measurement method to determine who is a full-time employee, categorical exclusions of entire classes of employees from your medical plan increase the risk that you will miss your targets, especially beginning in 2016, when you'll have much less margin for error ... [C]ategorical exclusions also increase the risk of incurring the Section 4980H(b) penalty, which applies when your organization avoids the [4980H(a)] penalty but any of your full-time workers end up purchasing health insurance on the Exchange and qualifying for the tax subsidy." (Warner Norcross & Judd LLP)  

[Guidance Overview]

Entire Subset of HSAs Will No Longer Qualify as HSAs If California Governor Signs Bill
"California teeters on the edge of passing a law that will make many HSA-eligible plans illegitimate on January 1, 2016.... There is no reasonable way to interpret the requirement for an embedded out of pocket maximum (OOPM) ... that would square with all HSA-eligible plans. The standard effective date for new legislation such as this is January 1st following the enactment. This bill does not provide delayed effective dates for the embedded OOPM; only for embedded deductibles." (Benefit Revolution)  

Employers Finalize Preparations for ACA Reporting
"It is important for ALEs and employer sponsors of self-insured group health plans to note that although the IRS has proposed a good faith compliance standard for the 2015 filing cycle, the type of documentation necessary to prove qualification for this good faith standard in the event of an audit is unknown. Additionally, the good faith compliance standard does not apply to late filings.... Carriers, self-insured plans, and ALEs required to file Forms 1094 and 1095 will be required to use a new electronic filing system for these filings." (Hill, Chesson & Woody)  


[Advert.]

Open-Enrollment Season: Tips for Employers Educating Employees

Sponsored by Lorman and BenefitsLink

October 20 -- Learn how to design a benefits package that is attractive to employees and combats rising costs, and learn strategies for communicating those benefits to employees to make them more knowledgeable consumers of health care. BenefitsLink discount.



HIPAA Enforcement is About to Get Serious
"All of the publicity has increased public awareness regarding HIPAA breaches and has put significant pressure on the [the HHS] Office of Civil Rights (OCR) to start flexing its enforcement muscle. Now, it looks like the pressure is coming internally as well since the HHS Office of the Inspector General recently released a [28-page report] [entitled 'OCR Should Strengthen Its Oversight of Covered Entities' Compliance with the HIPAA Privacy Standards'] summarizing its internal investigation of OCR's enforcement practices." (Graydon Head & Ritchey LLP)  

OCR Releases Platform to Solicit Comments from Software Developers on HIPAA Requirements
"The Office for Civil Rights (OCR), the sub-agency within [HHS] charged with enforcement of HIPAA, recently launched a new tool that is intended to help developers of health care technology understand more about this important law. The idea with this new platform is that developers can post questions and comments about HIPAA privacy and security concerns. This will allow OCR to better understand the barriers that developers face and provide helpful feedback and guidance." (Gray Plant Mooty)  

Health Care Costs for Couples in Retirement Rise to an Estimated $245,000
"[A] couple, both aged 65 and retiring this year, can now expect to spend an estimated $245,000 on health care throughout retirement, up from $220,000 last year. The figure has increased 29 percent since 2005 when it was $190,000. Factors boosting this year's estimate include longer life expectancies and anticipated annual increases for medical and prescription expenses. The estimate assumes enrollment in Medicare health coverage but does not include the added expenses of nursing home or long-term care." (Fidelity)  

Why D.C.'s Proposal for Universal Paid Leave Is Such a Big Deal
"D.C.'s plan isn't the first to take on leave at a local level.... But D.C.'s is different in that it provides more wage coverage for an extended period, and gives workers who live or work within the District the possibility of receiving the benefit, even if their employer isn't eligible to participate, a point that's especially important in a city where a large number of people are employed by the federal government or commute to states such as Maryland or Virginia where the city can't impose payroll taxes." (The Atlantic)  

CMS Webinar: Successful Completion of the 2015 Reinsurance Contributions Supporting Documentation (PDF)
53 slides from presentations on Oct. 5 and Oct. 7, 2015. Topics include: [1] Who makes reinsurance contributions? [2] Who is required to submit supporting documentation? [3] What information is needed to complete supporting documentation? [4] What tools are available to create the supporting documentation? [5] Are you ready to submit the supporting documentation with the form? [6] Key deadlines and next steps. (Centers for Medicare & Medicaid Services [CMS], U.S. Department of Health and Human Services [HHS])  

Almost Half of Obamacare Plans on Federal Marketplace Lack Out-Of-Network Coverage
"Overall, 52.6 percent of Obamacare plans on Healthcare.gov had out-of-network coverage, leaving nearly half of plans without easily accessible out-of-network coverage.... The percentage of Obamacare marketplace plans offering out-of-network coverage in each state ranged from 0 percent in South Dakota to 100 percent in Alaska, Alabama, Louisiana, Tennessee, and West Virginia.... In 13 states, less than half of plans offered out-of-network coverage." (HealthPocket)  

Benefits in General; Executive Compensation

[Official Guidance]

Tax Relief for Victims of Severe Storms and Flooding in South Carolina
"The President has declared Berkeley, Charleston, Clarendon, Dorchester, Georgetown, Horry, Lexington, Orangeburg, Richland, Sumter and Williamsburg counties a federal disaster area. Individuals who reside or have a business in these counties may qualify for tax relief. The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Oct. 1, and on or before February 16, 2016 have been postponed to February 16, 2016." (Internal Revenue Service [IRS])  

Upcoming Amendments to Federal Rules of Civil Procedure Will Impact ERISA Litigation
"On December 1, 2015, barring action by Congress, amendments to the Federal Rules of Civil Procedure will take effect. A number of these amendments are intended to fine-tune the discovery process, and they may have an impact on ERISA-related discovery. Of particular note are the increased emphasis on proportionality in discovery; additional requirements in objecting to discovery requests; and a significant limitation on sanctions for loss of electronically stored information." (Begos Brown & Green LLP)  

[Opinion]

Does the CEO Pay Ratio Rule Have Merit?
"This is an introduction to a package of three opinion articles debating the merits of the new CEO pay ratio rule. One opposes it, another is in favor of it, and a third offers a very different take on the matter.... Two of the three articles in this package take diametrically opposing positions: the rule has merit, or it does not. The third article proceeds from the viewpoint that this rule is now the law of the land, and whatever we think of its merits, what use can we make of it?" (CFO)  

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