Q.- Do we have to make sure all of our employees actually have health coverage, or may we allow employees to waive coverage at open enrollment?
Benefits.gov is an online resource that helps people find federal benefits. The resource is a cross-governmental collaboration between many federal agencies. It is intended to be a single source of benefit information to help Americans understand which benefit programs they may be eligible for and how to apply. The website may be accessed by clicking here.
The Centers for Medicare & Medicaid Services (CMS) of the U.S. Department of Labor released materials and supporting documents for a new Summary of Benefits and Coverage (SBC). The new documentation must be used for plan years beginning on or after January 1, 2021.
Earlier this year, rules were issued expanding health reimbursement arrangements (HRAs) in the individual market. HRAs are employer-funded accounts that employees may use to pay for medical expenses, including health insurance premiums. It was clarified that employees may use HRA amounts to purchase individual insurance policies outside of the workplace. These “individual coverage HRAs” allows employees to use tax-free employer dollars to buy individual health insurance. HRA funds are tax free to employers and employees, which means individual HRAs give the same tax benefits as traditional employer-sponsored group health plans.
Q.- We have a health FSA with a carryover. We don’t want to allow participants to use the carryover money anymore. Can we get rid of the carryover?
The Children’s Health Insurance Program Reauthorization Act (“CHIPRA”) requires employers sponsoring group health plans to provide information to employees about the availability of premium assistance subsidies for Medicaid or CHIPRA programs. Employers must provide notice each year to all employees whether they participate in the health plan or not.
A. Under the Affordable Care Act, an hour of service is defined as each hour for which an employee is paid, or entitled to payment, for the performance of duties for the employer; and each hour for which an employee is paid, or entitled to payment, by the employer for a period of time during which no duties are performed due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty, or leave of absence. So, PTO hours should be counted in determining if the employee “works” 130 hours in a month for full-time status.
Yesterday, the Internal Revenue Service announced several tax code inflation adjustments for the 2020 tax year. Employers should note the new, upcoming limits for their welfare benefit plans.
The Affordable Care Act requires an applicable large employer to offer health coverage to its full-time employees or pay a tax penalty. A full-time employee is one who works 30 or more hours per week (130 or more hours per month). There are two methods for determining full-time status: the monthly measurement method and the look-back measurement method.