July 2013
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.
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Hot Topics in Employee Benefits Management:
Health insurance marketplace issues are addressed in CMS FAQs , Employee Benefits Management Directions, Issue No. 541, June 4, 2013 — The Centers for Medicare & Medicaid Services (CMS) has issued a set of frequently asked questions (FAQs) on the health insurance marketplaces under the Patient Protection and Affordable Care Act (ACA). These FAQs address a variety of issues relating to marketplaces (also known as exchanges in ACA).
EEOC reminds employers of GINA obligations, Employee Benefits Management Directions, Issue No. 541, June 4, 2013 — The EEOC has posted updated information on the Genetic Information Nondiscrimination Act (GINA). Title II of GINA prohibits the use of genetic information in making employment decisions in any aspect of employment, including benefits.
Speakers at compliance seminar look at the ACA's upcoming changes for employers, Employee Benefits Management Directions, Issue No. 542, June 18, 2013 — Attorneys Melissa R. Junge and Michael D. Rosenbaum, from the law firm of Drinker, Biddle & Reath, gave advice to employers and health plan professionals regarding remaining in compliance with the Patient Protection and Affordable Care Act (ACA) in the next few years, at the "GCG Regulatory and Compliance Update Seminar" held in June.
IRS, HHS, EBSA issue final regulations on nondiscriminatory wellness programs, Employee Benefits Management Directions, Issue No. 542, June 18, 2013 — The IRS, HHS and EBSA jointly issued final regulations that clarify the reasonable design of health-contingent wellness programs, along with the reasonable alternatives they must offer in order to avoid prohibited discrimination.
What's New in Employee Benefits Management:
2014 HSA amounts — The IRS has issued inflation adjusted amounts under Code Sec. 223 for health savings accounts (HSAs) for 2014. The amounts can be found at ¶39,067.
SHOP Exchanges — Guidance on federally-facilitated exchanges and final regulations on special enrollment periods for SHOP Exchanges are discussed at ¶12,130.
Wellness regulations — The final regulations (see story above) are discussed at ¶20,030.
Pending legislation — The listing of bills related to employee benefits has been updated at ¶2820.
Dependent care credits — The discussion of dependent care credits has been updated at ¶39,140.
What's New in Benefits Answers Now (BAN):
IRS, HHS, EBSA issue final regulations on nondiscriminatory wellness programs. The IRS, the Department of Health and Human Services (HHS), and the Employee Benefits Security Administration (EBSA) have jointly issued final regulations that clarify the reasonable design of health-contingent wellness programs, along with the reasonable alternatives they must offer in order to avoid prohibited discrimination. The regulations increase the maximum permissible reward under health-contingent wellness programs offered in connection with a group health plan (and any related health insurance coverage) from 20 percent to 30 percent of the cost of coverage. To find out more about wellness plans, see ¶23,050 and ¶81,540.
HHS finalizes SHOP special enrollment periods under ACA. The Department of Health and Human Services (HHS) has issued a final rule that addresses triggering events and special enrollment periods for qualified employees and their dependents and implements a transitional policy regarding employees’ choice of qualified health plans (QHPs) in the Small Business Health Options Program (SHOP) under the Patient Protection and Affordable Care Act (ACA). The regulations were effective on July 1, 2013. See the discussion at ¶20,065 for more information about SHOP exchanges.
Annual 401(k) Benchmarking Survey highlights plan sponsor focus on employee retirement readiness. While 401(k) account balances are at an all-time high, plan sponsors are relaxing restrictions on eligibility and contributions, and employers are reinstating and increasing matching contributions, concern about employees’ perceived lack of preparedness for retirement is a primary focus of plan sponsors. The 12th Annual 401(k) Benchmarking Survey, conducted by Deloitte, the International Foundation of Employee Benefit Plans, and the International Society of Certified Employee Benefit Specialists, highlights the measures plan sponsors are taking to educate and better prepare participants for retirement. Find out more about the survey results at ¶10,710, ¶10,790, and ¶10,910.
Most underestimate health care cost needs in retirement. Most individuals underestimate the amount of money needed for health care expenses in retirement, according to recent research from Fidelity Investments. A 65-year-old couple retiring in 2013 is estimated to need $220,000 to cover medical expenses throughout retirement. Fidelity noted that this is an 8 percent decrease from last year's estimate of $240,000. More information about health care cost needs in retirement can be found at ¶22,970.
What's New in Spencer’s Benefits Reports:
Summary Of Benefits And Coverage. Under the health reform law, group health plans are required to provide a summary of benefits and coverage (SBC) to plan participants. This report describes the employer’s role in providing SBCs (Report 522.1.-1)
Employer, Employee Definitions. Legislation or IRC provisions that affect employee benefit plans frequently define which employers and employees are subject to the legislation/the IRC. This report lists major laws regulating employee benefits and the corresponding definitions of “employer” and “employee” (Report 301.-1).
CDHPs. CDHPs typically have two components: first, a traditional health plan; and second, some type of individual health account. This report provides an overview of CDHPs (Report 356.-1).
COBRA Model Notices. The DOL has provided several different COBRA model notices. This report summarizes the DOL guidance on how to use the model notices (Report 329.3.-1).
DFVC Program. The EBSA maintains a Delinquent Filer Voluntary Compliance (DFVC) program to encourage and facilitate voluntary compliance by plan administrators with ERISA’s annual reporting requirements. This report provides an overview of the DFVC program (Report 603.1.-1).
New Pension/Benefits Titles Added:
401(k) Advisor, July 2013
403(b) Answer Book, 8th Ed, 2013 Cumulative Supp
Coverage & Nondiscrimination Answer Book, 4th Ed, 2013 Cumulative Supp
Employee Benefits Plan Review, July 2013
Health Savings Account Answer Book, 9th Ed
Pension Benefits, July 2013
Qualified Domestic Relations Order Handbook, 3rd Ed, 2013 Supp