Viewing posts from: November 2018

AssuredPartners HRCI & SHRM Pre-Approved Webinar | Let’s Wrap This Up! Understanding the Basics of Health & Welfare Plan Document Requirements

Posted November 19, 2018 by Megan DiMartino

Does your company’s health and welfare plans each have their own plan document and SPD, or are all of your benefits wrapped together under one plan? Do your benefit plan documents and SPDs include the required language under ERISA and other federal laws, or are you relying on the certificates, policies and benefit summaries provided to you by your carriers and/or TPAs to keep you compliant?

If you answered “yes” to the latter questions or if you just don’t know where your company falls, this webinar will help you break down the document requirements and start your company down a path to compliance.

Please join Caroline Smith, Esq., VP of Compliance for AssuredPartners, for this HRCI* and SRHM** pre-approved, complimentary, one-hour webinar as she provides an overview of ERISA and other federal law requirements as they relate to the plan documents, SPDs and the like, and helps you better understand the risks and penalties associated with noncompliance. This webinar will also include a look at the requirements under the Internal Revenue Code and corresponding regulations related to Cafeteria Plans and what those requirements mean to your company. Our goal is to provide tangible takeaways to help employers assess their company’s current risk and learn what to do to get into compliance.

Webinar details:

  • Thursday, November 29, 2018
  • 2:00pm – 3:00 pm EST
  • No cost to attend
  • This webinar is open to all HR and Finance Professionals – but not to brokers, agents, TPAs and PEOs

Register Now


*The use of this seal confirms that this activity has met HR Certification Institute’s® (HRCI®) criteria for recertification credit pre-approval.
**AP Benefit Advisors, LLC is recognized by SHRM to offer Professional Development Credits (PDCs) for SHRM-CP or SHRM-SCP. This program is valid for 1 PDC for the SHRM-CP or SHRM-SCP. For more information about certification or recertification, please visit shrmcertification.org.


For more information, contact info@apbenefitadvisors.com. The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

IRS Announces 2019 Contribution Limits for Health Care FSAs and Qualified Transportation Plans

Posted November 15, 2018 by Patrick Haynes

Today, the Internal Revenue Service announced the tax year 2019 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes (generally referred to as cost-of-living increases).  Revenue Procedure 2018-57 provides details about these annual adjustments.

The 2019 tax items of greatest interest to our clients that are employers and plans sponsors include:

  • Annual Healthcare Flexible Spending Account (FSA) contribution limits will increase $50 from the current amount of $2,650 to $2,700.
  • Monthly limit for transit and parking will increase $5 from the current amount of $260 to $265.
  • Annual maximum reimbursement for a qualified small employer health reimbursement arrangement (QSEHRA) will increase $100 for individual coverage from the current amount of $5,050 to $5,150, and the maximum reimbursement amount will increase $200 for family coverage from the current amount of $10,250 to $10,450.

Please contact your Account Manager or Sales Executive for more information.

Links: 

 

Small & Large Employer Health Reform Checklists

Posted November 13, 2018 by Megan DiMartino

Employers that offer health care coverage to employees are responsible for complying with many of the provisions of the Affordable Care Act (ACA). Most health reform changes apply regardless of the employer’s size, but some changes apply only to small employers and other changes apply only to large employers. Even employers that do not offer any coverage need to comply with certain requirements to distribute notices to workers or submit reports to federal agencies.

Linked below are two, different, Health Reform Checklists. One applies to Small Employers and the other to Large Employers.

For more information about which employers are subject to the Employer Shared Responsibility provisions and other ACA-related questions, please contact your Account Manager or Sales Executive.

Links:
Small Employer Checklist
Large Employer Checklist


For more information, contact info@apbenefitadvisors.com. The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

PCORI Fees Last Installment

Posted November 6, 2018 by Patrick Haynes

Applies to: Self-Insured Health Plans, including HRAs & FSAs

Employers who sponsor self-insured health plans must pay their annual Patient-Centered Outcomes Research Institute (PCORI) fees by July 31st!

PCORI fees are reported and paid annually using IRS Form 720 (Quarterly Federal Excise Tax Return). The applicable PCORI fee you pay each July is based on when your plan year ended.

  • $2.26 for plan years ending between January 1, 2017 – September 30, 2017
  • $2.39 for plan years ending between October 1, 2017 – December 31, 2017
  • $2.45 for plan years ending on/after October 1, 2018 but before October 1, 2019
  • Please see our multi-year reference chart, here.
As a reminder, the PCORI fees are based on the average number of covered lives under the plan or policy. This ordinarily includes employees and their enrolled spouses and dependents. Individuals who are receiving continuation coverage (such as COBRA coverage) must also be included in the number of covered lives under the plan in calculating the fee. Plan sponsors of self-insured health plans must use one of the following three methods to determine the average number of lives covered under a plan for the plan year:
  1. Actual Count Method: A plan sponsor may determine the average number of lives covered under a plan for a plan year by adding the totals of lives covered for each day of the plan year and dividing that total by the total number of days in the plan year.
  2. Snapshot Method: A plan sponsor may determine the average number of lives covered under an applicable self-insured health plan for a plan year based on the total number of lives covered on one date (or more dates, if an equal number of dates is used in each quarter) during the first, second or third month of each quarter, and dividing that total by the number of dates on which a count was made.
  3. Form 5500 Method: An eligible plan sponsor may determine the average number of lives covered under a plan for a plan year based on the number of participants reported on the Form 5500, Annual Return/Report of Employee Benefit Plan, or the Form 5500-SF, Short Form Annual Return/Report of Small Employee Benefit Plan.
HRAs and Health FSAs
Health Reimbursement Arrangements (HRAs) and health Flexible Spending Accounts (FSAs) are not completely excluded from the obligation to pay PCORI fees. However, two special rules apply for plan sponsors that provide an HRA or health FSA. Under these special rules:
  1. If a plan sponsor maintains only an HRA or health FSA (and no other applicable self-insured health plan), the plan sponsor may treat each participant’s account as covering a single life. This means that the plan sponsor is not required to count spouses or other dependents.
  2. An HRA is not subject to a separate research fee if it is integrated with another self-insured plan providing major medical coverage, provided the HRA and the plan are established and maintained by the same plan sponsor and have the same plan year. This rule allows the sponsor to pay the PCORI fee only once with respect to each life covered under the HRA and other plan. However, if an HRA is integrated with an insured group health plan, the plan sponsor of the HRA and the issuer of the insured plan will both be subject to the research fees, even though the HRA and insured group health plan are maintained by the same plan sponsor.

The same analysis applies to health FSAs that do not qualify as excepted benefits.

Please contact your AssuredPartners’ Sales Executive or Account Manager for any further questions or assistance.


Please see the following IRS resources for more information on the ACA’s PCORI Fees:
IRS Notice 2018-85 (released 11/05/2018)
For more information, contact info@apbenefitadvisors.com. The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

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