April 2010
From the editors of CCH's BENE and BAN products, here are hot topics from
recent Employee Benefits Management Directions newsletters as well as
recent explanatory updates in Employee Benefits Management. Also included
are recent explanatory updates to the Benefits Answers Now product.
If you have any comments/suggestions concerning the information provided or the format used, we'd like to hear from you. Please contact me at tulay.turan@wolterskluwer.com.
Hot Topics in Employee Benefits Management:
President Obama signs bill extending COBRA subsidy, Employee Benefits Management Directions newsletter, Issue No. 463, March 9, 2010 – On March 2, 2010, President Obama signed the Temporary Extension Act of 2010 (H.R. 4691), which extends the eligibility period for the COBRA premium subsidy through March 31, 2010.
Expert provides analysis of details and potential pitfalls of new MHPAEA regs, Employee Benefits Management Directions newsletter, Issue No. 464, March 23, 2010 – The IRS, in conjunction with the HHS and the EBSA, recently issued long-awaited regulations on the Paul Wellstone and Pete Domenici Mental Health Parity and Addition Equity Act (MHPAEA) of 2008. Although the regulations were developed after a review of more than 400 public comments, the Agencies are still seeking comments on specific issues, since, in their current form, they do not address every area of concern for employers regarding the application of the MHPAEA. Joelle Sharman, a partner at the law firm of Ford & Harrison LLP, has answered CCH’s questions to address some of these concerns.
States continue health care reform activity, Employee Benefits Management Directions newsletter, Issue No. 463, March 9, 2010 – As federal lawmakers continue to wrestle with national health care reform, the states continue with reform efforts of their own. Here’s a summary of the latest state activity.
COBRA subsidy information will highlight COBRA continuation of coverage survey, Employee Benefits Management Directions newsletter, Issue No. 464, March 23, 2010 – Spencer's Benefits Reports is now collecting information for its 2010 COBRA health care continuation of coverage survey. Survey forms are available online (visit http://www.zoomerang.com/Survey/?p=WEB22A6JEFSRSH to complete the survey). Spencer's Benefits Reports has been collecting and analyzing COBRA survey information since1990. This year's survey requests information concerning the costs, administrative procedures, and problems associated with COBRA and the COBRA subsidy initiated in 2009.
What's New in Employee Benefits Management:
Mental health parity regulations – The mental health parity regulations are discussed at ¶10,065.
Medical expenses chart – The list of deductible medical expenses has been updated at ¶2040.
Domestic partners – The discussion at ¶10,110 has been updated to reflect Washington state’s domestic partnership law.
State benefit mandates – The state mandates on alcohol and substance abuse coverage have been updated at ¶10,705.
FMLA – The Ninth Circuit’s ruling in Traxler v. Multnomah County is discussed at ¶68,062. In a case of first impression, the court found that it was up to the court, not a jury, to determine if a former employee was entitled to front pay for an alleged FMLA violation.
2010 SIFL rates – The Standard Industry Fare Level (SIFL) rates for the first six months of 2010 have been added at ¶150,086.
What's New in Benefits Answers Now (BAN):
Health reform becomes law. The Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010, contains significant expansions of access and coverage for almost all Americans. To find out more about the new law, see ¶20,010 and ¶20,020.
Mental health parity rules provide guidance on financial requirements, treatment limitations. Detailed guidance for determining parity between mental health benefits and health care benefits, in particular for financial requirements and treatment limitations, is included in interim final rules that implement the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act (MHPAEA) of 2008. The rules generally apply to group health plans and group health insurance issuers for plan years beginning on or after July 1, 2010. To learn more about mental health parity, see the discussion at ¶21,860.
IRS issues guidance on HEART Act benefit rules for military service members. The IRS has issued guidance on various provisions of the Heroes Earnings Assistance and Relief Tax (HEART) Act. The HEART Act, enacted in 2008, contained a number of provisions affecting the pensions and employee benefits of military personnel. The new guidance covers HEART Act rules relating to distributions from retirement plans to individuals called to active duty. More information about qualified reservist distributions can be found at ¶12,730.
President Obama signs bill extending COBRA subsidy. On March 2, 2010, President Obama signed the Temporary Extension Act of 2010, which extends the eligibility period for the COBRA premium subsidy through March 31, 2010. See the discussion at ¶22,515 for more information about the COBRA subsidy.
Many companies planning to restore 401(k) match in 2010. Many U.S. employers are increasingly losing confidence in their workers' ability to save for retirement and, as a result, plan to step up their efforts this year to help workers maximize their 401(k) savings, according to a survey by Hewitt Associates. High on employers' priority lists in 2010: restoring company 401(k) matches that were suspended or reduced during the market downfall and adding automated tools and investment features that take the guesswork out of saving and investing. Find out more about this survey about 401(k)s at ¶11,100.