Health and Welfare Plans Archives - Page 62 of 129

Phase 2 HIPAA Audits Are Underway

by Anthony A. Bongiorno | May 5, 2016 | Health and Welfare Plans, Privacy and Data Security

The US Department of Health and Human Services Office for Civil Rights (OCR) will soon begin a second phase of audits for compliance with HIPAA privacy, security and breach notification standards as required by the HITECH Act. In this second phase, OCR will audit both covered entities and their business associates, unlike the pilot audits of 2011 and 2012, which focused on covered entities alone. This On the Subject details practical steps that covered entities, including employer-sponsored group health plans, and their business associates can take to prepare for a potential audit.

Read the full article.

IRS Announces Limits for Health Savings Accounts and High-Deductible Health Plans for 2017

by Jacob Mattinson | May 3, 2016 | Health and Welfare Plans

Recently the Internal Revenue Service (IRS) announced (see Revenue Procedure 2016-28) cost-of-living adjustments to the applicable dollar limits for health savings accounts (HSAs) and high-deductible health plans (HDHPs) for 2017. Although one of the dollar limits currently in effect for 2016 will change, the majority of the limits will remain unchanged for 2017, with some of the limits remaining unchanged since 2015. The table below compares the applicable dollar limits for HSAs and HDHPs for 2016 and 2017.

HEALTH AND WELFARE PLAN LIMITS 2017 2016 HDHP – Maximum annual out-of-pocket limit (excluding premiums): Self-only coverage $6,550 $6,550 Family coverage $13,100 $13,100 HDHP – Minimum annual deductible: Self-only coverage $1,300 $1,300 Family coverage $2,600 $2,600 HSA – Annual contribution limit: Self-only coverage $3,400 $3,350 Family coverage $6,750 $6,750 Catch-up contributions (age 55 or older) $1,000 $1,000

Plan sponsors should update payroll and plan administration systems for the 2017 cost-of-living adjustments and should incorporate the new limits in relevant participant communications, like open enrollment and communication materials, plan documents and summary plan descriptions.

For further information about applying the new HSA and HDHP plan limits for 2017, contact your regular McDermott lawyer or one of the contacts listed below.

Two Adverse Decisions against Church Plans Reached at Appellate Court Level

by McDermott Will & Emery and Michael T. Graham | Apr 26, 2016 | Employment, Health and Welfare Plans, Labor, Retirement Plans

Since 2014, large church-controlled health systems that offer defined benefit pension plans have seen lawsuits filed as to whether such plans are eligible to qualify for the ERISA church-plan exemption, which governs those arrangements. When a retirement plan meets the ERISA church-plan exemption, it is exempt from the typical funding and vesting requirements of ERISA and the Internal Revenue Code as well as from the ERISA reporting and disclosure requirements. As the church-plan litigation moves to the appellate level, two adverse decisions are reached denying ERISA church-plan exemption to two health systems.

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The Department of Labor Issues Proposed Regulations Implementing Paid Sick Leave for Federal Contractors

by McDermott Will & Emery | Apr 21, 2016 | Employment, Health and Welfare Plans

The Department of Labor (DOL) recently announced its proposed regulations to implement Executive Order (EO) 13706, establishing paid sick leave for federal contractors. The proposed regulations describe the categories of contracts and employees covered by the EO, the rules and restrictions regarding the accrual and use of such paid sick leave, the obligations of contracting agencies, and the available remedies and enforcement procedures.

Read the full article.

Summary of Benefits and Coverage Templates Finalized

by Megan Mardy | Apr 19, 2016 | Employment, Health and Welfare Plans

On April 6, 2016, the US Department of Labor posted final versions of the updated summary of benefits and coverage (SBC) template and instructions, updated uniform glossary and other associated materials. In previous guidance, the US Departments of Treasury, Labor, and Health and Human Services provided that health plans and issuers who maintain an open enrollment period will be required to start using the new template and associated documents on the first day of the open enrollment period beginning on or after April 1, 2017, with respect to coverage for the plan year or policy year that begins on or after April 1, 2017. Health plans and issuers who do not use an open enrollment period should begin using these documents on the first day of the first plan year or policy year that begins on or after April 1, 2017.

Employers should begin preparations to ensure that the finalized documents are ready for distribution by the required implementation date. Health plans and issuers with calendar year plans and open enrollment periods must be ready to use the new documents during the 2017 open enrollment period for coverage that begins on January 1, 2018. Health plans and issuers with calendar year plans and no open enrollment period should be prepared to use the documents by January 1, 2018.

EEOC Files Lawsuits Against Employers for Sex Discrimination Under Title VII

by Brian Tiemann and Todd Solomon | Apr 12, 2016 | Employment, Health and Welfare Plans, Retirement Plans

For the first time, the U.S. Equal Employment Opportunity Commission (EEOC) is suing private employers on behalf of employees alleging sexual orientation discrimination. On March 1, 2016, the EEOC issued a press release announcing it has filed its first two sexual orientation lawsuits alleging violations of Title VII of the Civil Rights Act of 1964 (Title VII).

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Recent Government-Issued FAQs Clarify ACA Employer Mandate, Market Reforms

by McDermott Will & Emery | Apr 1, 2016 | Employee Benefits, Employment, Health and Welfare Plans

The Internal Revenue Service and U.S. Departments of Health and Human Services and Labor recently issued guidance on the Affordable Care Act employer mandate and market reforms. Notice 2015-87 contains 26 FAQs that clarify the application of market reforms to health reimbursement arrangements and employer payment plans and the affordability of employer-sponsored health coverage, among other topics.

Read the full article.

Implementation Date for New Summary of Benefits and Coverage Template

by Megan Mardy | Mar 23, 2016 | Employment, Health and Welfare Plans

The U.S. Departments of Treasury, Labor, and Health and Human Services (the Departments) recently issued new guidance regarding the intended timeframe for the use of the new summary of benefits and coverage (SBC) template and instructions, an updated uniform glossary and other associated materials.

Background

The Affordable Care Act (ACA) generally requires group health plans and health insurance issuers offering group or individual health insurance coverage to provide an SBC to participants and beneficiaries. The Departments issued revised final regulations governing the SBC requirement on June 16, 2015, and published a proposed new SBC template on February 26, 2016. Comments on the proposed template and associated documents are due by March 28, 2016.

Read the full article.

Form 5500 Deadline Extension Repealed

by Allison Wilkerson, Joseph K. Urwitz and Sarah L. Engle | Mar 11, 2016 | Health and Welfare Plans

On December 4, 2015, President Obama signed the Fixing America’s Surface Transportation Act (FAST Act). In addition to authorizing $305 billion in funding for federal highway projects, the FAST Act also repeals the recently enacted extension to the Form 5500 filing deadline included in the Surface Transportation and Veterans Health Care Choice Improvement Act (Surface Transportation Act).

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Supreme Court Emphasizes Heightened Pleading Standard for Stock Drop Cases

by McDermott Will & Emery | Mar 4, 2016 | Employee Stock Ownership Plans (ESOPs), Fiduciary and Investment Issues, Health and Welfare Plans

On January 25, 2016, the Supreme Court of the United States issued a per curiam opinion in Amgen Inc. v. Harris, holding that the Amgen, Inc. employees who filed suit after the value of the employer stock in which they had invested dramatically decreased, failed to sufficiently plead a breach of fiduciary duty claim under ERISA in light of the Court’s decision last term in Fifth Third Bancorp v. Dudenhoeffer.

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