ERISA imposes penalties of $110 per day for any failure to comply, the IRS levies tax penalties up to $2,000,000. download the full list of federal fines for non-compliance.
DOL, as a result of new rulemaking FAQ XIX, has released new model COBRA notices which provide additional language for qualifiers to read about the opportunities in the federal exchange. Check out the bulletin and a link to the new notices are provided at http://www.dol.gov/ebsa/
On April 23, 2014, the IRS released Revenue Procedure 2014-30, which announces increases to the maximum that taxpayers can contribute to their HSA, and to the qualifying threshold for a high deductible health plan.
Increase to Maximum Contribution
For calendar year 2015, the annual maximum an individual with self-only coverage can contribute to an HSA will increase to $3,350. The maximum for an individual with family coverage is $6,650.
Increase to High Deductible Health Plan Limits
Also changing in 2015 is the threshold amount for a plan to qualify as a High Deductible Health Plan (HDHP). The annual HDHP deductible will increase to $1,300 for self-only coverage and $2,600 for family coverage. Additionally, the annual HDHP out-of-pocket expenses—including deductibles, copayments, and coinsurance, but not premiums—may not exceed $6,450 for self-only coverage and $12,900 for family coverage.
Watch & Listen as we discuss the rules for counting full time employees and what mid/large employers need to know
President Obama signs the "Protecting Access to Medicare Act of 2014" and changes small business deductible rules
On April 1, 2014 President Obama signed the "Protecting Access to Medicare Act of 2014". This law repeals the annual deductible limit requirement for small employer insured health plans that became effective for plan years beginning on or after January 1, 2014. Section 1302(c)(2)(A) of the Affordable Care provided that deductible limits for 2014 could not exceed $2,000 for a plan covering a single individual, or $4,000 for any other plan. This new law also prevents scheduled payment reductions for providers who treat Medicare patients from becoming effective on April 1, 2014.
President Obama signs protecting access to medicare act of 2014 into law april 1, 2014, eliminating the annual deductible limit
This change to the ACA also adjusts the ICD-10 coding rules, but the most impactful law change to our TPA niche and confirms the use of higher deductible plans in the marketplace will exist and many believe the use of HRA combination plans will be used to continue to manage premiums.
The Internal Revenue Service issued final regulations on March 5, 2014 that address the reporting requirements for employers under the Affordable Care Act (the "ACA"). The regulations became effective on March 10, 2014.
Section 6055 (Minimum Essential Coverage Report) and Section 6056 (Shared Responsibility Report) that are to be reported on form 1095-C to the IRS by February 28 and to the employees by January 31. Download our full report here.
Flex Credit Cafeteria Plans: How this Cafeteria Plan Design can Help Employers Maintain Costs in 2014 and Beyond
The most complex form of a cafeteria plan is the “full flex” or "flex credit" plan. This type of plan is a true cafeteria plan in which employees can choose among different taxable and non-taxable benefits. Employees use benefit dollars or credits that are offered by the employer to select the benefits that meet their individual needs. The employer can use a full flex cafeteria plan in conjunction with a defined contribution to set an amount that it wants to contribute to the benefits and allow employees to pay the remainder. Download the full article
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