Q.- When we tell a former employee that he must make his COBRA premium payment by the first of the month with a 30-day grace period, what does “make payment” really mean?
The State of California placed a new notice requirement on employers who sponsor flexible spending account (FSA) plans that impose a deadline to withdraw funds before the end of the plan year. The law applies to health care FSAs, dependent care FSAs and adoption expense FSAs. The new notice is intended to warn individuals if their plan requires reimbursement requests to be made before the end of the plan year.
Starting with Tax Year 2019, the State of New Jersey requires employers, insurers and other providers of health coverage to send health care coverage information to the State. The health care coverage returns will be used by the State to verify that each New Jersey resident has health insurance, has a valid exemption from having health insurance or pays a penalty. The New Jersey requirement, set forth in the New Jersey Health Insurance Market Preservation Act (HIMPA), is a continuation of the federal Affordable Care Act (ACA).
Q.- An employee wants to know if she can be reimbursed from her FSA for the cost of a home genetic testing kit. Can she?
Employers with prescription drug plans must provide a notice to Medicare-eligible participants letting them know if their prescription drug coverage is “creditable” or “non-creditable.” Prescription drug coverage is creditable if it provides benefits that are at least as good as the standard Medicare Part D benefit.
With calendar-year plan open enrollment season approaching, employers should consider how they treat payments made for opting out of health coverage.
Q.- Do we have to keep track of PTO hours for determining if an employee is a full-time for ACA purposes?
A new rule from the U.S. Department of Labor will make many more workers eligible for overtime pay under the Fair Labor Standards Act (FLSA). The FLSA sets minimum wage and overtime pay requirements for non-exempt U.S. workers.
- What is Form 1095-C?
Form 1095-C is an IRS form for Affordable Care Act reporting. Form 1095-C provides employees with information about their health coverage and their employer’s offer of health coverage. Applicable Large Employers (those with 50 or more full-time employees in the prior year) must furnish Form 1095-C to their full-time employees confirming the offer of health coverage to employees and their dependents.