August 24, 2023

The Consolidated Omnibus Budget Reconciliation Act 1985 (COBRA) requires plan administrators to provide certain disclosures to plan participants, other covered dependents, and those who lose their health plan coverage and attain the status of qualified beneficiaries. Failing to meet COBRA requirements can result in significant consequences for the employer who is the Plan Sponsor, including penalties as well as potential liability to pay extensive medical bills if COBRA enrollment opportunities are missed. 

One of the best ways an employer can ensure they are managing group health plan requirements appropriately and mitigating unnecessary risk and expenses is to know their notice responsibilities and to make sure they are met.

August 24, 2023

It has now been over three years since the National Emergency was announced in March 2020. As a result, there was a flood of relief directed at employee benefit plans. This included guidance issued by the Department of Labor (DOL) and Internal Revenue Service (IRS) to extend certain plan deadlines. The National Emergency continued for such a significant length of time, that returning to the normal administration of benefits, now that it has ended, may be difficult for those who have grown accustomed to extended deadline dates.

August 24, 2023

The IRS has issued Notice 2023-37, providing information on expenses related to preventative care for the purposes of high deductible health plans (HDHPs) and eligibility for HSAs. This guidance modifies the position the IRS has previously taken. 

August 24, 2023

More employers than ever are offering their employees a high deductible health plan (HDHP) with an HSA option to help keep costs down. Here are a few things to think about when first getting started.

August 24, 2023

Flexible Spending Accounts (FSAs) and Health Reimbursement Arrangements (HRAs) are designed to reimburse medical care expenses. IRS Code says that expenses must be for the “diagnosis, cure, mitigation, treatment or prevention of disease, or for the purpose of affecting any structure of function of the body”, but what if something can be used to cure a disease and for general health? In these cases you must use the "but for" test. 

May 25, 3023

Offering a Flexible Spending Account (FSA) is a great way for employers to retain and attract new talent and promote financial wellness. Recent studies reveal that participants are regularly forfeiting substantial FSA sums. What should an employer do with these forfeitures?

May 25, 2023

High deductible health plans (HDHPs) can be great for employees. The premium savings mean more money in their paychecks. Pairing an HDHP with a Health Savings Account (HSA), can offer another tax-advantaged means of saving.  Offering a wellness program is another way employers can help employees enrolled in an HDHP to manage their healthcare costs. Wellness programs can help employers reduce their benefit costs too. These programs can take many forms, so thoughtful analysis is needed to determine what features will best help both employers and their employees lower overall healthcare spending. 

May 25, 2023

When it comes to offering a Flexible Spending Account (FSA), employers do not usually have the capabilities or the time to manage all aspects of the plan, so it makes sense to contract with a third-party administrator (TPA) to carry out administrative functions, particularly the time-consuming task of claims processing. 

So, what explanation can an employer provide when an employee complains that the TPA has denied their FSA claim?

May 25, 2023

ERISA imposes certain requirements on employers that offer health and benefit plans to employees. There are several distinct areas of ERISA compliance, which include maintaining compliant plan documents and corresponding operations, adhering to fiduciary obligations, meeting fidelity bonding requirements, submitting annual Department of Labor (DOL) reporting and providing participant disclosures.

May 17, 2023

The IRS has issued Revenue Procedure 2023-23, providing inflation-adjusted Health Savings Account (HSA) contribution amounts for calendar year 2024.