June 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:
Getting familiar with the new health care law, Employee Benefits Management Directions newsletter, Issue No. 467, May 4, 2010 – President Obama ran for the presidency in part on the promise of health care reform. And, on March 23, 2010, he kept that promise by signing into law the Patient Protection and Affordable Care Act (P.L. 111-148). The reform brings many changes that employers and HR will need to take a significant amount of time to wrap their minds around.
Tax-free employer-provided health coverage now available for children under age 27, Employee Benefits Management Directions newsletter, Issue No. 467, May 4, 2010 – As a result of changes made by the recently enacted Patient Protection and Affordable Care Act (P.L. 111-148), health care coverage provided for an employee’s children under age 27 years of age is now generally tax-free to the employee.
HHS interim final rule implements Early Retiree Reinsurance Program, Employee Benefits Management Directions newsletter, Issue No. 466, May 18, 2010 – The Department of Health and Human Services (HHS) has issued an interim final rule establishing the Early Retiree Reinsurance Program as provided in Act Sec. 1102 of the Patient Protection and Affordable Care Act (PPACA; P.L. 111-148). PPACA includes $5 billion in financial assistance to employers to help them maintain coverage for early retirees age 55 and older who are not yet eligible for Medicare.
DOL, IRS, HHS issue interim final rules for adult child health care coverage, Employee Benefits Management Directions newsletter, Issue No. 466, May 18, 2010 – The Departments of Labor, Treasury, and Health and Human Services have issued interim final regulations that will require group health plans and health insurance issuers in the group and individual markets to allow parents to enroll their children who have not attained age 26 for dependent coverage.
What's New in Employee Benefits Management:
Health care reform – Several provisions of the Patient Protection and Affordable Care Act (P.L. 111-148), as amended by the Health Care and Education Reconciliation Act of 2010 (P.L. 111-152), have been reflected in Explanations as follows: ¶10,025 (additional tax on HSA/MSA distributions), ¶10,240 (reporting cost of coverage on W-2), ¶10,330 (CLASS program), ¶10,500 (tax treatment of dependent coverage), ¶10,505 (state premiums for small employer credit), ¶38,060 (limit on over-the-counter reimbursements through FSA/HSAs), ¶50,035 (breaks for breastfeeding), ¶51,010 through ¶51,050 (adoption credit), and ¶152,202 (additional Medicare tax on wages).
Early Retiree Reinsurance Program – The regulations on the Early Retiree Reinsurance Program (see story above) are discussed at ¶53,260.
Public Health Service Act (PHSA) – Title XXVII of the PHSA, as amended by health care legislation, is at ¶600,093.
San Francisco expenditure rates – The City of San Francisco has released its 2011 health care expenditure rates under its Health Care Security Ordinance (HCSO). The rates are at ¶10,760.
Medicare Part D cost threshold and limit – The 2011 cost threshold and cost limit amounts for Medicare Part D are at ¶10,360.
New model COBRA notices – The new model COBRA notices, which reflect the extension of the premium subsidy by the Continuing Extension Act of 2010 (P.L. 111-157), are at ¶226,105 through ¶226,109.
Supreme Court – A plan administrator’s reasonable interpretation of plan provisions was entitled to deference, the Supreme Court has ruled in Conkright v. Frommert. The case is discussed at ¶130,090, and the full text of the case is at ¶906,577.
What's New in Benefits Answers Now (BAN):
DOL, IRS, HHS issue interim final rules for adult child health care coverage. The Departments of Labor, Treasury, and Health and Human Services have issued interim final regulations that will require group health plans and health insurance issuers in the group and individual markets to allow parents to enroll their children who have not attained age 26 for dependent coverage. These interim final regulations implement the dependent coverage provisions added by the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act. The interim final regulations generally apply to group health plans and group health insurance issuers and to individual health insurance issuers for plan or policy years beginning on or after September 23, 2010. More information about the extension of dependent coverage to adult children can be found at ¶21,170 and ¶21,175.
Patient Protection and Affordable Care Act requires no cost-sharing preventive care coverage. Effective almost immediately, the Patient Protection and Affordable Care Act requires group health plans to cover preventive care services with no cost-sharing. Employer plans and insurers are required to comply with these preventive services mandates by Sept. 23, 2010. To learn more about the preventive care mandates, see the discussion at ¶20,055.
President signs bill temporarily extending jobless benefits. President Obama has signed into law the Continuing Extension Act of 2010 (P.L. 111-157), which provides a two-month extension of unemployment compensation, subsidies for COBRA health insurance premiums and short term extensions of Medicare physician payments, federal poverty guidelines, flood insurance programs; and small business loan guarantee programs. The COBRA subsidy was extended until the end of May. To find out more about the COBRA subsidy, see ¶22,515.
HHS interim final rule implements Early Retiree Reinsurance Program. The Department of Health and Human Services (HHS) has issued an interim final rule establishing the Early Retiree Reinsurance Program as provided in the Patient Protection and Affordable Care Act (PPACA; P.L. 111-148). PPACA includes $5 billion in financial assistance to employers to help them maintain coverage for early retirees age 55 and older who are not yet eligible for Medicare. The program will end in 2014, when Americans will be able to choose from additional coverage options through the health insurance exchanges. The regulations are effective on June 1, 2010. Find out more about the early retiree reinsurance program at ¶22,875.
Poor economy is causing more workers to delay retirement. A quarter of workers in the 2010 Retirement Confidence Survey say the age at which they expect to retire has increased in the past year (24 percent). Statistically, this is similar to the percentage indicating they were planning to postpone retirement in 2009 (25 percent) and an increase over the percentage planning to postpone retirement in 2008 (14 percent). See the discussion at ¶10,010 for more information about the reasons employees are delaying retirement.