May 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:
Health care reform legislation overhauls nation’s health insurance and delivery systems, Employee Benefits Management Directions newsletter, Issue No. 465, April 6, 2010 – President Obama, on March 30, 2010, signed the Health Care and Education Reconciliation Act of 2010 (P.L. 111-152), completing a massive overhaul of the nation’s health insurance and health delivery systems. The Reconciliation Act modifies the Patient Protection and Affordable Care Act (P.L. 111-148), which the President signed on March 23, 2010.
Important health reform provisions effective this year, Employee Benefits Management Directions newsletter, Issue No. 466, April 20, 2010 – President Barack Obama has signed into law the Patient Protection and Affordable Care Act (P.L. 111-148). According to Nancy-Ann DeParle, Director, White House Office of Health Reform, some reforms in the new law are effective this year.
Tax credit helps small employers provide health insurance coverage, Employee Benefits Management Directions newsletter, Issue No. 466, April 20, 2010 – Many small businesses and tax-exempt organizations that provide health insurance coverage to their employees now qualify for a special tax credit, according to the Internal Revenue Service.
Expert details impact of CHIPRA provisions, Employee Benefits Management Directions newsletter, Issue No. 466, April 20, 2010 – The Children’s Health Insurance Program Reauthorization Act (CHIPRA) of 2009, signed into law by President Barack Obama on February 4, 2009, reauthorized the Children’s Health Insurance Program (CHIP), and finances it through fiscal year 2013. To find out more about the employer requirements under CHIPRA, CCH, a Wolters Kluwer business, interviewed Amy Healy, counsel, Miller & Chevalier, Chartered’s employee benefits practice in Washington DC.
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: ¶10,097 (individual and employer responsibilities), ¶10,100 (market reforms, including waiting periods and rescission), ¶10,105 (dependent coverage), ¶10,140 (coverage requirements), ¶10,240 (reporting and disclosure requirements), ¶10,310 (lifetime maximums), ¶10,315 (elimination of deduction for retiree drug subsidy), ¶10,345 (coverage of clinical trials), ¶10,420 (preexisting condition exclusion), ¶10,425 (appeals process), and ¶10,505 (small employer health insurance credit), ¶10,510 (nondiscrimination rules) ¶38,090 (cafeteria plans for small employers).
ERISA – The health care reform laws amended several ERISA sections. These amendments can be found at ¶500,060, ¶500,500, ¶500,530, ¶500,645B, ¶500,645D, ¶500,645F, and ¶500,718B.
New model COBRA notices – The new model COBRA notices, which reflect the extension of the premium subsidy, are at ¶226,105 through ¶226,109.
Evidence of FMLA eligibility – A former employee could present testimony that she could not perform the functions of her job for more days than were indicated in a note from her doctor for purposes of taking FMLA leave, according to the Third Circuit Court of Appeals (CA-3). The court’s decision in Schaar v. Lehigh Halley Health Services, Inc. is discussed at ¶68,054.
What's New in Benefits Answers Now (BAN):
Health care reform legislation overhauls nation’s health insurance system. On March 23, President Barack Obama signed the Patient Protection and Affordable Care Act into law. BenefitsAnswersNow is in the process of updating its questions to reflect all of the provisions of the new legislation. To find out more about the new law, see these recently-updated questions: ¶20,010, ¶20,020, ¶20,030, ¶20,060, ¶20,070, ¶20,160, ¶23,725, and ¶73,930.
Expert provides analysis of details and potential pitfalls of new MHPAEA regs. 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 Addiction 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. More information about the mental health parity regulations can be found at ¶21,820, ¶21,860, and ¶21,870.
Tax credit helps small employers provide health insurance coverage. Many small businesses and tax-exempt organizations that provide health insurance coverage to their employees now qualify for a special tax credit, according to the Internal Revenue Service. Included in the health care reform legislation, the Patient Protection and Affordable Care Act, the credit is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have. In general, the credit is available to small employers that pay at least half the cost of single coverage for their employees. To learn more about the small employer tax credit, see the discussion at ¶60,310.
HSAs unlikely to cover retiree health costs, says EBRI. Health savings accounts (HSAs) are likely to play a minor part in savings for health care costs in retirement, according to a report issued by the nonpartisan Employee Benefit Research Institute (EBRI). That's because both statutory contribution limits and currently low interest rates constrain the amount HSAs are able to generate, compared with the large amount needed to pay for retiree health expenses. Find out more about using HSAs for retirement expenses at ¶23,770.
EBSA finalizes regs on civil penalties against underfunded multiemployer plans. The Department of Labor's Employee Benefits Security Administration (EBSA) has issued final regulations that establish procedures relating to the assessment of civil penalties of up to $1,100 a day against the sponsor of a multiemployer plan for certain ERISA violations. The final regulations are effective on March 29. See the discussion at ¶14,590 for more information about underfunded multiemployer plans.