June 2014
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:
CRS analyzes economic consequences of ACA’s small employer provisions, Employee Benefits Management Directions, Issue No. 563, May 6, 2014 — The Congressional Research Service (CRS) has published an analytical report of provisions of the Patient Protection and Affordable Care Act (ACA) that are relevant to small businesses. The report, The Affordable Care Act and Small Business: Economic Issues, explains that health insurance and the health care market contain fundamental flaws leading to an inefficient allocation of resources.
Companies embrace health plan consumerism strategies to comply with ACA, avoid “Cadillac tax”, Employee Benefits Management Directions, Issue No. 563, May 6, 2014 — Many employers are beginning to scale back their medical plan designs in an effort to avoid the “Cadillac tax” required by the Patient Protection and Affordable Care Act (ACA) in 2018, according to the fifth annual Medical Plan Trends Report issued by Highroads and CEB.
ACA-related FAQs address limitations on cost-sharing, summary of benefits and coverage, Employee Benefits Management Directions, Issue No. 564, May 20, 2014 — The Departments of Labor (DOL), Health and Human Services (HHS), and the Treasury (the Departments) have jointly issued another set of frequently asked questions (FAQs) about the implementation of the Affordable Care Act (ACA). The FAQs address an array of topics, including limitations on cost-sharing, coverage of preventive services, health flexible spending account (FSA) carryover, the summary of benefits and coverage (SBC), and the continuing application of previously issued enforcement and transition relief guidance.
Clarification of coverage options for COBRA-eligible workers is released by DOL, Employee Benefits Management Directions, Issue No. 564, May 20, 2014 — Proposed regulations containing amendments to COBRA’s notice requirements have been issued by the Department of Labor (DOL), along with updates to COBRA model notices, clarifying to workers that, if they are eligible for COBRA continuation upon leaving a job, they may, instead, purchase coverage via the Health Insurance Marketplace.
What's New in Employee Benefits Management:
2015 HSA amounts —The IRS has issued inflation adjusted amounts under Code Sec. 223 for health savings accounts (HSAs) for 2015. For the amounts, see ¶39,067.
Health exchanges — The discussion at ¶12,130 has been updated with recent guidance on health exchanges.
ACA FAQs — The latest set of ACA-related frequently asked questions (FAQ) are discussed at ¶10,140, ¶10,240, and ¶38,060.
COBRA notices — The Department of Labor has issued updated model COBRA notices to conform with the ACA. The notices are at ¶225,969 and ¶226,105.
What's New in Benefits Answers Now (BAN):
Clarification of coverage options for COBRA-eligible workers is released by Labor Department. Proposed regulations containing amendments to COBRA’s notice requirements have been issued by the Department of Labor, along with updates to COBRA model notices, clarifying to workers that, if they are eligible for COBRA continuation upon leaving a job, they may, instead, purchase coverage via the Health Insurance Marketplace. The proposed regulations better align COBRA’s notice requirements with requirements of the Patient Protection and Affordable Care Act’s (ACA) provisions already in effect. See the discussion at ¶22,540 for more information about the new COBRA notice requirements.
IRS issues 2015 inflation-adjusted amounts for HSAs. The IRS has issued inflation adjusted amounts for health savings accounts (HSAs) for 2015. For calendar year 2015, the annual limitation on deductions for an individual with self-only coverage under a high deductible health plan is $3,350. For calendar year 2015, the limitation on deductions for an individual with family coverage under a high deductible health plan is $6,650. Also, for calendar year 2015, a "high deductible health plan" is defined as a health plan with an annual deductible that is not less than $1,300 for self-only coverage or $2,600 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,450 for self-only coverage or $12,900 for family coverage. To find out more about HSAs and the annual limits, see ¶23,700 and ¶23,715.
ACA-related FAQs address limitations on cost-sharing. The Departments of Labor, Health and Human Services, and the Treasury have jointly issued another set of frequently asked questions (FAQs) about the implementation of the Patient Protection and Affordable Care Act (ACA). The FAQs address limitations on cost-sharing. More information about the cost-sharing provisions of the ACA can be found at ¶20,010.
PBGC issues final regs on unpredictable contingent event benefit phase-in rules. The Pension Benefit Guaranty Corporation (PBGC) has issued final regulations providing guidance on the phase-in period for the guarantee of "unpredictable contingent event benefits." The regulations implement provisions of the Pension Protection Act of 2006 (PPA). The regulations are effective June 5, 2014. Find out more about unpredictable contingent event benefits at ¶12,410.
What's New in Spencer’s Benefits Reports:
HSAs. Individuals with HDHPs can open HSAs with annual tax free contributions. This report provides an overview of HSAs, with the updated contribution amounts for 2015 (Report 356.-5)
ADP/ACP Testing. Design-based safe harbor rules can be used for a Sec. 401(k) plan to avoid ADP and ACP testing. This report discusses the principal features of the safe harbor rules (Report 226.-1).
SBCs. The ACA requires group health plans to provide a summary of benefits and coverage (SBC) that describes the benefits and coverage under the applicable plan. This report outlines final rules, and guidance issued on SBCs (Report 522.1.-1).
Health Care Surveys. Getting information about the increases in health care costs, and the reasons for those increases, is crucial for employers when setting future health plan policy. This report summarizes the findings of seven major surveys (Report 422.1.-1)
IRAs. This report describes the features, limitations, and tax treatment of each of the five types of IRAs (Report 105.1.-1).