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Health & Welfare Plans Newsletter December 9, 2020 |
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[Guidance Overview]
"While a 226-J letter contains a proposed penalty amount, it is not a bill. It's merely an estimate of what the IRS thinks a business might owe. If a company agrees with their assessment, they can pay it right away, but the proposed penalty amount is not final. The information and estimates offered in 226-J letters are also not guaranteed to be accurate. Proposed penalty amounts are often wrong, and there is a straightforward process for employers to respond to the IRS." MZQ Consulting, LLC |
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[Guidance Overview]
"Beginning on January 1, 2021, Massachusetts employees will be eligible for up to 26 weeks per year of paid leave ... Employees may take paid leave for their own serious health conditions, to bond with a child, to manage family affairs while a family member is on active duty, and to care for a family member who is a covered service member.... [E]mployers should take immediate steps to make sure they are complying with the MPFML, including implementing leave policies, updating handbooks, and submitting private plan exemption applications." Morgan Lewis |
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[Guidance Overview]
"With the federal [FFCRA] set to expire on December 31, 2020, absent an extension by the federal government, the Ordinance appears to be the City's effort to provide paid leave rights for qualifying reasons relating to COVID-19. However, the Ordinance considerably exceeds the FFCRA in the scope of covered employers." Reed Smith |
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"The Second Circuit ... dismissed an appeal by the plaintiffs in a consolidated class action suit against Anthem Inc. and Express Scripts Inc. that alleged the defendants violated their fiduciary responsibilities under [ERISA], instead ruling that health companies are not acting as ERISA fiduciaries when setting prescription prices. The plaintiffs originally alleged that an agreement between the two defendants resulted in higher drug prices, the costs of which they say were passed on to beneficiaries of the company's ERISA benefits plan." [Doe v. Express Scripts, No. 18-346 (2d Cir. Dec. 7, 2020)] Law|Street |
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"The ability to set prescription drug prices, the Second Circuit reasoned, was a contractual provision -- not the ability to exercise authority over plan assets. Affirming, the Second Circuit agreed with the district court that a PBM does not exercise discretionary authority in a manner that triggers ERISA fiduciary status when it sets prescription drug prices pursuant to contractual terms." [Doe v. Express Scripts, No. 18-346 (2d Cir. Dec. 7, 2020)] Thomson Reuters Practical Law |
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"[This report] summarizes key findings from the HHS report, with a focus on health plan performance as it relates to the Medical Loss Ratio and related rebates due to customers.... For 2019, Texas led the country with nearly $280 million in MLR rebates, a significant increase from $93 million in 2018. While Missouri was not the top state for rebate disbursements, the total amount of Missouri's rebates represented a high percentage of total adjusted premiums at 2.8%, up from 0.87% in 2018. " Mark Farrah Associates |
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Benefits in General |
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[Official Guidance]
"Victims of a severe storm and flooding on September 13, have until January 15, 2021, to file various individual and business tax returns and make tax payments ... Individuals and households who reside or have a business in Arecibo parish qualify for tax relief.... [C]ertain deadlines falling on or after September 13, 2020, and before January 15, 2021, are postponed through January 15, 2021. This includes individual and business tax filers that had a valid extension to file their 2019 return due to run out on October 15, 2020." Internal Revenue Service [IRS] |
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Press Releases |
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Steidle Pension Solutions Named Best Places to Work 2020
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Most Popular Items in the Previous Issue |
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Child and Dependent Care Tax Benefits: How They Work and Who Receives Them (PDF)
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