Here We Go Again! Benefits Legal Compliance Update

Similar documents
Understanding & Addressing Your 2019 Health and Welfare Benefits Compliance Obligations

Stay up-to-date with our compliance news!

Timeline. ASCIP ACA Reporting Diagnostics. ASCIP ACA Reporting Diagnostics May Debra Davis Area Vice President, Compliance Counsel

Affordable Care Act: What Employers Need to Know to be in Compliance in 2014

2015 Heath Care Reform Compliance Overview

Employer Shared Responsibility

2018 Employee Benefits Webinar Series. Introduction to Consumer Directed Healthcare and Account-Based Plans (HSAs, FSAs, and HRAs) November 15, 2018

SUMMARY OF QUALIFIED SMALL EMPLOYER HEALTH REIMBURSEMENT ARRANGEMENTS (QSEHRAS) Background

2016 Compliance Checklist

21 st Century Cures Act

ELECTION UPDATE AFFORDABLE CARE ACT 11/18/2014 WS+B CLIENT CPE

Affordable Care Act: Evolving Requirements & Compliance Implications

The Latest Developments in Health and Welfare Plans Larry Grudzien

HRAs, HSAs, and Health FSAs What s the Difference?

2017 Year-end Review & Reminders

HUB University: Benefits Legal Update 4/25/2018. September 20-21, 2018

Cabrillo College ACA Overview. May 2015

AFFORDABLE CARE ACT: STATUS CHART Health Plans

Health Care Reform: Be Prepared for 2014

Pay or Play Employer Shared Responsibility Penalties

Employer s Forum. ACA Update Presented by: Chad Morris, Vice President - Employee Benefits Consultant Gregory & Appel

2018 Compliance Checklist

Looking for a Life Vest?

2014 and Beyond. This timeline explains how and when the Affordable Care Act (ACA) provisions will be implemented over the next few years.

The Affordable Care Act: Time to Prepare for 2014 and Beyond

ACA for Employers Employee Benefits Conference May 15, 2015

19 th ANNUAL MAINE TAX FORUM Solutions for ACA Implementation

Health care reform update

Today s Presenter 2/21/2018

Affordable Care Act Planning for CPAs. Ben Conley Seyfarth Shaw LLP

TAXES AND FEES UNDER THE AFFORDABLE CARE ACT

HEALTH CARE REFORM OVERVIEW

Health Care Reform Update. April 2013

ACA UPDATES AND 1095C REPORTING FOR 2016

Solutions for ACA Implementation. berrydunn.com GAIN CONTROL

UPDATE ON THE AFFORDABLE CARE ACT

Cutting Through the Noise of Healthcare Reform

HEALTH & WELFARE PLAN LUNCH GROUP

ERISA FAQs. What Is ERISA? What Employers are Subject to ERISA? Why Should an Employer Comply With ERISA? Which Benefit Plans are ERISA Plans?

Health Care Reform Under the ACA Its Effect on Municipalities and Their Employees

William A. Dombi, Esq. National Association for Home Care & Hospice November 2, 2013

Pay or Play Employer Shared Responsibility Penalties

2014 Hill, Chesson & Woody

Affordable Care Act Employer Reporting and Compliance Update

HEALTH CARE REFORM UPDATE WHAT YOU NEED TO KNOW

Are We ACA Compliant: How to Perform a Self-Audit

H E A L T H C A R E R E F O R M T I M E L I N E

Employer Obligations and Coverage Options under the Affordable Care Act in 2014/2015

Health Reform Update. Board of County Commissioners Study Session June 30, 2015

2015 Employer Compliance Checklist

06/29/2015_830 AM. Healthcare Reform How Will Your Business be Affected in 2015 and Beyond? Introduction

HEALTH CARE REFORM PROVISIONS BY TYPE AND SIZE OF PLAN Last Rev. July 14, 2014

Complying with Health Care Reform

Health Care Reform/ Plan Sponsor Impact

2016 Open Enrollment Checklist

PPACA and Health Care Reform. A Chronological Guide to Changes and Provisions Affecting Employee Benefits Plans and HR Administration

Employer Reporting Guide for Large Employers and 6056 Reporting for Large Employers

Health Care Reform: Fact vs. Fiction for Small Business. What employers should be thinking about now to prepare for 2015

Health Care Reform Checklist

Health Care Reform. Ross Manson, Principal Tonya M. Rule, Tax Manager. Health Care Reform Update. ACA employer penalties delayed until /1/2014

THE AFFORDABLE CARE ACT: 2014 AND BEYOND

Healthcare Reform. July 17, 2013

NEW YORK STATE AUTOMOBILE DEALERS ASSOCIATION & SYRACUSE AUTO DEALERS ASSOCIATION September 16, 2014 Meeting Syracuse, New York

2013 Miller Johnson. All rights reserved.

Health Care Reform Toolkit Large Employers

President Obama speaks about the Affordable Care Act at the White House on May 10.

4/22/2014. Health Care Reform. Disclosure. Health Care Reform. How Will it Change Your Business Strategy?

Employee Benefits Compliance Update

THE PATIENT PROTECTION AND AFFORDABLE CARE ACT UPDATE

Health Care Reform. Key Employer Concerns

Health and Welfare Plan Compliance Checklist

ACA Violations Penalties and Excise Taxes

Healthcare Reform Update Considerations & Market Update November March 2013

ACA: Implementation Rules & Strategies. Joan Canning, MBA, HIA HR Advocate, LLC

The MC Academy The Employee Benefits and Executive Compensation Series HEALTH CARE REFORM ACT

HEALTH CARE REFORM GUIDE

5GBenefits, LLC Your Health Care Reform Partner

VSEBT Recommendations on Tracking Variable Hour Employees. May 17, 2013

An Employer s Guide to Health Care Reform. Important details to navigate employer-provided benefits amidst a changing health care landscape.

Simple answers to health reform s complex issues facing every employer, and what you can do now to protect your business and your future.

Navajo County Schools EBT

Important Effective Dates for Employers and Health Plans

The Future of American Health Care Reform

Health Care Reform Update:

9/18/13. The Affordable Care Act and Challenges for Colleges and Universities Legal Issues in Higher Education October 16, 2013.

VEHI FAQ. General Questions & Answers about the Affordable Care Act

HEALTH CARE REFORM PROVISIONS BY SIZE OF PLAN OR EMPLOYER July 14, 2014

Health Care Reform/ Plan Strategy

The Future of American Health Care Reform Copyright 2017 American Fidelity Administrative Services, LLC ESB

Employee Benefits Compliance Update

By Larry Grudzien Attorney at Law

AFFORDABLE CARE ACT SMALL EMPLOYER HEALTH REFORM CHECKLIST. Edition: November 2014

ACA REPORTING AND FILING: WHAT YOU NEED TO KNOW FOR BASIC is a technology driven HR compliance Company

HEALTH CARE REFORM A FINANCIAL PERSPECTIVE SEPTEMBER 21, 2011

Health Care Reform Update. August 27, 2015

Affordable Care Act Update

Benefits Compliance Overview: PPACA, Wellness Programs, Cafeteria Plans, FSAs, HSAs

ACA Update and Tackling the ACA s Reporting Requirements February 19, Presented by: Stacy H. Barrow Proskauer Rose LLP

Employee Benefits Compliance Checklist for Large Employers

SBAM Health & Welfare Benefits Compliance Checklist Including ERISA, ACA, Section 125, HIPAA, and other applicable federal statutes and regulations

Transcription:

Here We Go Again! Benefits Legal Compliance Update Sally Wineman, JD Area Vice President, Compliance Counsel

What s going on? 2

Midterm Elections 3

Recent Developments Repealed! Individual mandate penalties reduce to $0 beginning in 2019 What hasn t changed Employer mandate Forms 1094-C and 1095-C reporting Keep an eye on State individual mandates 4

Employer Shared Responsibility Do you have at least 50 FT and FTE employees? Is coverage affordable? No penalty applies! YES Is coverage offered to 95% of all full-time employees? YES Does plan have minimum value? YES YES NO NO NO NO No penalty applies! If at least one FT employee receives premium assistance: 2018: $2,320 (total # of FTs 30) 2019: $2,500 (total # of FTs 30) Lesser of: 2018: $3,480 for each FT receiving tax credit; OR $2,320 x (# of FTs 30) 2019: $3,750 for each FT receiving tax credit; OR $2,500 x (# of FTs 30) 5

Affordability Increase in Percentage 9.86% for 2019 Up from 9.56% for 2018 Affordability may be impacted by: HRA contributions Flex credits Rate of Pay Safe Harbor Example: Impact of Affordability Increase 2018 2019 Affordability Percentage 9.56% 9.86% Employee Contribution $200 $200 Salary Where Employee Contribution is Affordable $25,104.60 $24,340.77 Opt-out bonus 6

Employer Mandate Enforcement IRS has begun assessing potential employer mandate penalties for: A penalty: failure to offer coverage to enough full-time employees B penalty: failure to offer MV and affordable coverage to certain employees 2015 Enforcement 30,000 penalties notices issued $4.4 billion: Total penalties assessed so far Still more to come 7

Employer Mandate Enforcement If you receive a letter from the IRS Evaluate the accuracy of the IRS s proposed employer mandate penalties Review Letter 226J and other materials provided by the IRS Gather 2015 Forms 1094-C and 1095-C filed with the IRS Compare ESRP Summary Table to Form 1094-C Compare Form 14765, Employee PTC Listing to Forms 1095-C Use Form 14764, ESRP Response to respond 8

It s All Connected Group Health Plans Government Plans Providers Individual Market 9

The Marketplace Open Enrollment Coming! November 1 December 15, 2018 10

Cost Sharing Subsidies Cost-sharing subsidies eliminated Government provided subsidies to insurance companies To cover costs (deductibles, copays) for individuals with incomes under 250% FPL $10 billion in 2018 Silver loading allowed Class-action lawsuit certified 11

Executive Orders Promoting Healthcare Choice and Competition across the United States (Executive Order 13813) Executive Order Signed October 12, 2017 Days to Release Status Association Health Plans Short-Term Limited Duration Health Insurance HRA Funds for Individual Policies 60 days Final regulations released June 19, 2018 60 days Final regulations released August 1, 2018 120 days No public activity 12

Association Health Plans Final rules released New regulations create an additional mechanism for groups or associations to sponsor a single plan Challenges Association health plans are MEWAs Heavily regulated by states Most requirements for group health plans apply Impact to individual and small group markets 13

Evaluating Potential AHPs Consider the following issues when evaluating AHPs Are the benefits available through the AHP lesser than the plan currently offers? If so, they should timely communicate the reduction in benefits to employees. Does the AHP provide minimum value? If not, have they evaluated the amount of potential employer mandate penalties (if applicable)? Which safe harbor is the AHP relying on? Does the AHP comply with the state laws in all of the states where it is operating? Does the AHP have adequate reserves? Is the AHP required to pay claims before it pays administrative fees? If not, in what order are claims required to be paid? How will the employer know if claims are not being timely paid? Has the AHP filed Forms 5500 and M-1? What are the procedures for leaving the AHP? 14

Short Term Health Plans Final rules released Consumers can purchase short-term, limited-duration policies Less than 12 months (previously limited to 3 months) May be renewed for up to 36 months total States still permitted to regulate policies 15

Reporting Individualized Statement Form 1095-C Transmittal Report Form 1094-C Each Employee Statement Forms 1095-C TO FULL-TIME EMPLOYEES TO IRS January 31, 2019 Feb. 28, 2019 (April 1, 2019 if e-file) Feb. 28, 2019 (April 1, 2019 if e-file) 16

2019 Limits Out-of-Pocket (OOP) Maximum (single/family) 2018 2019 $7,350 / $14,700 $7,900 / $15,800 FSA Maximum $2,650 Pending Qualified HSA HDHP Minimum deductible $1,350 / $2,700 $1,350 / $2,700 Maximum OOP $6,650 / $13,300 $6,750 / $13,500 Maximum HSA contribution $3,450 / $6,900¹ $3,500 / $7,000 Catch-up HSA contribution $1,000 $1,000 ¹ Reinstated the HSA family maximum contribution to $6,900 for 2018 Transit Mass transit/van pooling $260 per month* Pending Parking $260 per month* Pending * No tax deduction for employers, but employee can use pre-tax income Bicycle commuter $0 $0 17

Taxes & Fees Cadillac Tax delayed to 2022! Health insurer tax suspended for 2019! PCORI fee nearly done! 18

Mental Health Parity Updated Guidelines Proposed FAQs and other proposed guidance regarding non-quantitative treatment limitations and disclosure requirements Address several benefit plan situations that may (or may not) violate MHPAEA, including: Experimental treatment exclusions Prescription drug dosage limitations Exclusions for a particular condition or disorder Step therapy Provider reimbursement rates Network adequacy Treatment setting limitations Network directories 19

HIPAA Enforcement As of December 31, 2017 160,297 HIPAA complaints received by HHS 25,637 cases investigated and resolved $75,229,182 in penalties imposed by HHS Recent Settlements $4.3 Million: Stolen laptop, lost thumb drives, failure to encrypt devices despite risk analysis showing high risk $2.5 Million: Stolen laptop, insufficient risk analysis, inadequate risk management processes, and policies and procedures were in draft form $31,000: No business associate agreement $400,000: Failure to timely conduct risk analysis $5.5 Million: Failed to implement procedures to terminate former employees access to PHI 20

HIPAA Enforcement Tips to avoid penalties Conduct (or update) a risk analysis Implement required safeguards Prepare for ransomware attacks Ensure paper records are protected and disposed in a secure way Obtain and strengthen Business Associate Agreements Conduct prompt investigations Timely report breaches Keep good records Develop protocols for terminated employees Train and retrain HIPAA workforce members 21

Wellness EEOC Final Wellness Regulations Allow incentive up to 30% of premium for wellness programs 30% is arbitrary and capricious try again! Plan new proposed rules in 2018, but not effective until 2021 Not timely enough 30% rule vacated as of Jan 1, 2019 New proposed rules coming soon? 22

Washington Washington Paid Family and Medical Leave Premium payments commence in 2019. Benefits available in 2020 Maximum weekly benefit is $1,000 Eligible for leave after working 820 hours in first four of the last five completed calendar quarters Leave runs concurrently with any FMLA leave Health benefits continued only as required by FMLA Funded with premiums paid by employers and employees Employers with 50 or fewer employees are exempt from paying the employer share, but may voluntarily elect to do so Indian Tribes and self-employed individuals may opt-in to the program Employers may opt-out if have voluntary plan that meets certain standards Leave not to exceed 12 weeks (may be extended to 18 months) 23

Washington State-provided School Employee Benefits (SEHB 2242) Establishes a School Employees Benefits Board to procure health care and other benefits for school district employees All school districts in WA must participate beginning January 1, 2020 24

Stay Focused Plans should be well-organized to avoid potential problems. Take methodical approach to dealing with government requirements and requests Be cautious when changing wellness programs or mental health benefits Conduct analysis and training for compliance with HIPAA Keep copies of important documents in one place Update eligibility provisions to reflect ACA classifications Be alert to guidance upcoming for new requirements (WPFML) Vote! Election is November 6 th. 25

Questions? ajghealthcarereform.com 26

Thank you! Questions? Morgan Donnelly, MBA Client Consultant 253.238.1137 morgan_donnelly@ajg.com Nancy Kokenge Area Vice President, Client Consultant 425.974.4465 nancy_kokenge@ajg.com