On November 14, 2013, the Centers for Medicare and Medicaid Services of the Department of Health and Human Services (CMS) issued a letter to state insurance commissioners detailing the Administration’s new “transitional policy” regarding non-grandfathered coverage in the small group and individual health insurance markets. Under the transitional policy, health insurance issuers may choose to
‘Use It Or Lose It?’ Not Necessarily… A Closer Look at the Recent IRS Guidance on Flexible Spending Accounts
The following article was originally prepared by Crowell & Moring, LLP on behalf of the American Benefits Council.
On October 31, 2013, the Internal Revenue Service (IRS) released Notice 2013-71 (Guidance), which modifies the existing “use-it-or-lose-it” rule for health flexible spending accounts (FSAs) set forth in proposed regulations under Section 125 of the Internal Revenue
Will your HRA or FSA Survive the Affordable Care Act? Answering Your Questions About Technical Release 2013-03
Q&A: New Guidance on Defined Contribution Health Arrangements
The following questions and answers were originally prepared by Crowell & Moring, LLP on behalf of the American Benefits Council, to highlight some of the more significant aspects of IRS Notice 2013-54 and Department of Labor Technical Release 2013-03 (the “New Guidance”) for employers and plan administrators. Our detailed analysis of the New Guidance follows below.
Q1: Can an employer sponsor a stand-alone HRA for its active employees?
A1: No. The New Guidance reiterates past guidance from the Agencies in providing that an employer cannot sponsor an HRA for its active employees, unless the HRA is “integrated” with an underlying major medical plan that does not consist solely of what are called HIPAA-excepted benefits. (HIPAA-excepted benefits are certain categories of benefits that are not subject to HIPAA’s portability requirements– for example, dental or vision benefits that are offered under a separate insurance policy or contract, or are not considered an “integral part of the plan” under law.) Thus, an HRA must be only available to employees who are enrolled in qualifying employer-sponsored major medical coverage- otherwise, it will violate PPACA’s market reforms.Continue Reading Will your HRA or FSA Survive the Affordable Care Act? Answering Your Questions About Technical Release 2013-03
HHS Issues Final Rule on Various Provisions of the Affordable Care Act
On July 5, 2013, the Department of Health and Human Services issued a final rule on various provisions of the Affordable Care Act, including essential health benefits in alternative benefit plans, eligibility notices, fair hearing and appeals processes, premiums and cost sharing, and eligibility verification by exchanges. In part, the final rule delays implementation of
Treasury Announces that ACA Employer-Shared Responsibility Payments Will Not Apply Until 2015
On July 2, 2013, Treasury published a blog post announcing that the Affordable Care Act employer shared responsibility payments imposed by Internal Revenue Code (Code) section 4980H (also known as “pay or play”) will not apply until 2015. It is also delaying until 2015 the mandatory reporting requirements for issuers and employers, as described in