Viewing posts from: June 2019

HRCI & SHRM Pre-Approved Webinar | 2019 Mid-Year Review – Your Compliance Checkup!

Posted June 19, 2019 by Megan DiMartino

Benefits WebinarsJoin us for this HRCI* and SHRM** pre-approved, complimentary, one-hour webinar as our General Counsel and VP of Compliance, Patrick Haynes, reviews the first-half of 2019 and provides a compliance checkup that you won’t want to miss.

Patrick will cover:

  • Changes to the Affordable Care Act (ACA)
  • ERISA/Section 125 Best Practices
  • Federal Government’s Approach to Health and Wellness Plans
  • “Working Wounded” – those employees and plan participants that no longer work the ACA-minimum required 30 hours per week, but are still on your plans

Webinar details:

  • Friday, June 28, 2019
  • 12:00pm – 1:00 pm EDT
  • 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.

AP Benefit Advisors’ webinar and website resources are designed for U.S.-based organizations. Our privacy and GDPR policy should be reviewed here. Please opt-out if you do not agree to these terms and conditions.

Individual Coverage and Extended Benefit HRAs Are in Play for 2020 Plan Start Dates

Posted June 14, 2019 by Patrick Haynes

On June 13, the U.S. Departments of Health and Human Services, Labor and Treasury issued a final rule that creates two new kinds of Health Reimbursement Arrangements (HRAs) – the Individual Coverage HRA (ICHRA) and the Extended Benefit HRA – effective for January 1, 2020 effective dates.

This final ruling is in response to the Trump administration’s October 2017 executive order on healthcare choice and competition.

Individual Coverage HRA

The ICHRA allows employers of all sizes that do not offer a group coverage plan to fund an HRA for employees to buy individual-market insurance, including insurance purchased on the public exchanges formed under the Affordable Care Act (ACA).

Currently, qualified small-employer HRAs (QSEHRAs) that were created by Congress in December 2016, allow small businesses with less than 50 full-time employees (FTEs) to use pre-tax dollars to reimburse employees who buy non-group health coverage. This ICHRA rule goes even further and doesn’t cap employer contributions. As a result, employers with less than 50 FTEs will have two choices – a QSEHRA or an ICHRA – with some regulatory differences between the two.

The departments posted an FAQ on the new rule that includes a model ICHRA employee notice and attestation form that complies with the new rule’s disclosure provision and aims to explain the type of HRA being offered and communicate that individuals may become ineligible for a premium or tax subsidy when participating in an ACA exchange-based plan.

If employers choose to offer this new ICHRA benefit in 2020, they will need to take action before then, including the required notice for eligible participants. Employees who want to take advantage of an ICHRA in the new year must enroll in an individual health plan during the open enrollment period (unless they have Medicare) that runs between November 1 and December 15, 2019.

Extended Benefit HRA

The Extended Benefit HRA will increase flexibility for employer-sponsored insurance. It can be offered in addition to a traditional group health plan to permit employers to finance up to $1,800 (pre-tax) of additional medical care (such as copays, deductibles, premiums for vision, dental, COBRA and short-term insurance coverage), even if the employee has declined enrollment in the traditional group health plan.

Anticipated Impact

These HRA rules will provide hundreds of thousands of businesses a better way to offer health insurance coverage so that millions of workers and their families can obtain the best coverage for their needs.

The ICHRA will help small employers compete for talent as they have typically faced unaffordable costs that prevent them from offering a traditional group health plan, and, in particular, the Extended Benefit HRA will benefit the growing number of employees who have opted out of their employer’s traditional group health plan because their share is too expensive.

The departments estimate that these HRA rules will help 800,000 employers insure more than 11 million employees and family members of which 800,000 were previously uninsured.

Should you have additional questions or comments, please contact your Sales Executive or Account Manager.  Thank you.

Links

ACA Limits, Penalties and Fees – 2014-2019

Posted June 14, 2019 by Megan DiMartino

Employer Shared Responsibility (Employer Mandate)

Plan Years 2019 2018 2017 2016 2015 2014
Affordability Safe Harbor Percentage 9.86% 9.56% 9.69% 9.66% 9.56% 9.50%

Employer Mandate Penalties – Calendar Year

Penalties 2019 2018 2017 2016 2015 2014
Tier One: Failure to offer coverage or to offer to 95% of employees (70% for 2015) $2,500 $2,320 $2,260 $2,160 $2,080 $2,000
Tier Two: Failure to offer coverage that is affordable and meets minimum value $3,750 $3,480 $3,390 $3,240 $3,120 $3,000

Market Rules

Account Limits 2019 2018 2017 2016 2015 2014
Health Care Flexible Spending Account (FSA) $2,700 $2,650 $2,600 $2,550 $2,550 $2,500
Dependent Care Flexible Spending Account (FSA) $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Health Spending Accounts (HSA)
High Deductible Health Plan Annual Deductible Minimums (Self-Only/Family) $1,350
$2,700
$1,350
$2,700
$1,300
$2,600
$1,300
$2,600
$1,300
$2,600
$1,250
$2,500
Annual Out-of-Pocket Maximums (Self-Only/Family) $6,750
$13,500
$6,650
$13,300
$6,550
$13,100
$6,550
$13,100
$6,450
$12,900
$6,350
$12,700
Maximum Contribution (Self-Only/Family) $3,500
$7,000
$3,450
$6,850/$6,900
$3,400
$6,750
$3,350
$6,750
$3,350
$6,650
$3,300
$6,550
Transportation
Parking (per month) $265 $260 $255 $255 $250 $250
Mass Transit (per month) $265 $260 $255 $255 $250 $130

Fees – Paid by Health Plan (per Covered Life)

Fees 2019 2018 2017 2016 2015 2014
Transitional Reinsurance Fee N/A N/A $0 $27.00 $44.00 $63.00
Patient-Centered Outcomes Research (PCORI)
Plan Years Ending 1/1 – 9/30 $2.45 $2.39 $2.26 $2.17 $2.08 $2.00
Plan Years Ending 10/1 – 12/31 N/A $2.45 $2.39 $2.26 $2.17 $2.08

 

2020 HSA Limits were made available on May 28, 2019.  Please see those details here:  https://www.apbenefitadvisors.com/2019/05/28/irs-releases-2020-limits-for-hsas/

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


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.

AP Benefit Advisors’ webinar and website resources are designed for U.S.-based organizations. Our privacy and GDPR policy should be reviewed here. Please opt-out if you do not agree to these terms and conditions.

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