Q.- I have an employee who plans to resign in June. She currently covers herself and her son under her medical insurance. She is Medicare eligible so will not need medical coverage, but her son will. He turns 26 in August 2016. How much COBRA coverage should we offer the son?
Employers with 20 or more employees subject to the Consolidated Omnibus Budget Reconciliation Act (COBRA) must offer employees and their families who lose health coverage the right to continue that coverage for a limited period of time upon certain circumstances when coverage would otherwise end. Qualified individuals may be charged the entire cost of coverage, plus an additional 2%.
A new special enrollment period for Marketplace enrollment is being offered to individuals who owe a tax penalty for not having health coverage in 2014. Between March 15 and April 30, 2015, individuals who owe a tax penalty for not having health coverage or having insufficient coverage will be given an opportunity to enroll in Marketplace coverage.
Q.- Why can’t our employees be reimbursed from their health FSA for the cost of insurance premiums? Premiums are listed in IRS Publication 502 as a medical expense.
The City of Philadelphia will require employers to provide their employees with up to 40 hours of paid sick time each year. The law is effective starting May 13, 2015.
The Affordable Care Act prohibits an employer from paying or reimbursing employee premiums for individual health insurance. These types of arrangements violate both the annual dollar limits and the preventive services mandates under health care reform, since they are considered separate group health plans that must meet health care reform requirements.
Q. Our health plan used to cover our independent contractors. When we renew our plan April 1st, we will no longer be able to cover these people. Do we give them the right to continue our coverage under COBRA?
A recent decision by the U.S. Supreme Court changes the previously held principles governing vesting of retiree health benefits. In M&G Polymers v. Tackett, the Court held that general contract principles determine if a collective bargaining agreement serves to vest retirees in their health benefits and the contributions they must pay for health coverage.
A small employer may be eligible for a tax credit for providing health care coverage to employees.
Q.- An employee participates in our health flexible spending account plan. He wants to be reimbursed for an expense incurred by his daughter. However, he is divorced and his daughter lives with his ex-wife. His ex-wife claims the daughter as a dependent for tax purposes. Can the employee still submit his daughter’s expenses for reimbursement from his health FSA?
The United States Department of Labor proposed new guidelines to prohibit sex discrimination by federal contractors. Guidelines for sex discrimination were issued in 1970 and have not been changed since that time.
The Internal Revenue Service will waive penalties for certain taxpayers who received subsidized health coverage through the Exchange but still owe a penalty for not satisfying the individual mandate for health coverage. The waiver applies only to certain people who received subsidized health insurance during 2014.