Health Insurance

Is Your Prescription Drug Coverage Creditable?

Employers providing prescription drug coverage to individuals who are eligible for Medicare Part D must inform both the individuals and the Centers for Medicare and Medicaid Services (CMS) whether their prescription drug coverage is “creditable.” Let’s take a look at what that means: The prescription drug coverage in a group health plan is considered creditable…

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2018 ACA Reporting Draft Forms Now Available

The Internal Revenue Service has released draft versions of 2018 forms for Affordable Care Act (ACA) reporting under IRS Code Sections 6055 and 6056. Specifically, Forms 1094-C and 1095-C are now available in draft versions for reporting under Section 6055 and 6066, as are Forms 1094-B and 1095-B for reporting under Section 6066. Here’s what…

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HSA/HDHP Limits to Increase for 2019

On May 10, 2018, the IRS announced inflation-adjusted limits for both health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2019. These recently-announced limits include the maximum HSA contribution limit, the minimum deductible amount for HDHPs and the maximum out-of-pocket expense for HDHPs. Note, however, that not all of these are changing in…

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ACA Affordability Percentages Increasing

On May 21 of this year, the Internal Revenue Service (IRS) issued Revenue Procedure 2018-34 to index the contribution percentages for 2019 for the purposes of determining affordability of an employer’s plan under the Affordable Care Act (ACA). This change marks a significant increase from the percentages applicable in 2018. As a result, some employers…

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Health Plan Audits: What You Need

Much as the Internal Revenue Service has the authority to audit tax returns, the Department of Labor (DOL) has a broad mandate to investigate and audit an employee benefits plan’s compliance with the Employee Retirement Income Security Act (ERISA). Audits are performed by the DOL’s Employee Benefits Security Administration (EBSA), and will often focus on…

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Fringe Benefits – Tax Changes for 2018

Employers who offer fringe benefits like transportation reimbursement and meals to their employees are familiar with Internal Revenue Service (IRS) Publication 15-B – Employer’s Guide to Fringe Benefits, which offers guidance on the tax treatment of such employee benefits. The IRS recently released an updated version of Publication 15-B for 2018, incorporating tax law changes…

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New Employer Tax Credit for Paid Family & Medical Leave

The Tax Cuts and Jobs Act signed into law in December of last year creates a new business tax credit for employers that provide paid family and medical leave to employees. Here’s what you need to know: The tax credit is temporary and applies to tax years 2018 and 2019 The credit is equal to…

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New Year, New Changes

As always, the turning of that last page on the calendar brings legislative changes to the worlds of benefits and compliance. Here’s a look at highlights of the changes thus far for 2018: Minimum Wage Changes in Many States While the federal minimum wage rate remains at $7.25 per hour, some 20 states have adopted…

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Employee Benefit Plan Limits for 2018

Many employee benefits are subject to annual dollar limits, periodically updated by the IRS to allow for inflation. These include high deductible health plans (HDHPs), health savings accounts (HSAs), health flexible spending accounts (FSAs), 401(k) plans and transportation fringe benefit plans. Here’s a look at what’s changing – and what’s not – next year: The…

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The Executive Order on ACA Rules – What Does It Mean?

On October 12, President Trump signed an executive order intended to change certain rules under the Affordable Care Act (ACA). The order is intended to relax regulations on association health plans, allowing individuals and small businesses to purchase health insurance policies across state lines and avoid certain ACA requirements. The ostensible effect of the order…

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