June 21, 2021

While much focus, to date, has been on implementing the American Rescue Plan Act of 2021 (ARPA), employers and plan administrators must now turn their attention to preparing the necessary notice to some Assistance Eligible Individuals (AEIs) concerning the expiration of any subsidies they have received.  

June 21, 2021

Many Americans currently save money for healthcare expenses through a Health Savings Account (HSA) paired with an employer-sponsored high deductible health plan (HDHP). However, due to the pandemic, many employees have lost their employer-sponsored health coverage.  This may impact their eligibility to contribute to an HSA. 

June 21, 2021

In the current environment of fast-changing laws and regulations impacting employer-sponsored benefits, it is increasingly necessary for employers to conduct a critical review of benefit plan changes that have been offered or mandated during the pandemic. Several key areas require focused attention and prompt proactive consideration to maintain plan compliance. Here are some important questions to ask:

May 24, 2021 - Additional IRS Guidance Concerning Premium Assistance for COBRA Benefits  

On May 18, 2021, the IRS issued Notice 2021-31, which provides FAQs for further guidance on the American Rescue Plan Act of 2021 (ARPA) that was signed on March 11, 2021.

May 12, 2021

The IRS has issued Notice 2021-26 to answer questions related to Dependent Care Flexible Savings Accounts (DCFSA), specifically the interaction between the temporary extensions and carryovers allowed by the Consolidated Appropriations Act (CAA) and the increased maximum contribution amount allowed by the American Rescue Plan Act (ARPA).

May 12, 2021

The IRS has issued Revenue Procedure 2021-25, providing inflation-adjusted Health Savings Account (HSA) contribution amounts for calendar year 2022: 

April 9, 2021

The American Rescue Plan Act of 2021 (ARPA), enacted on March 11, 2021, allows qualified beneficiaries to receive premium assistance if health coverage was lost because of involuntary termination of employment or a reduction in hours. This assistance is available for the coverage period beginning on April 1, 2021, and ending on September 30, 2021. Premium assistance is initially “advanced” by the plan sponsor or insurer and then recovered or reimbursed through a tax credit.

March 30, 2021

The IRS has issued Notice 2021-21, officially delaying the April 15, 2021 federal income tax filing due date for individuals for the 2020 tax year to May 17, 2021. This delay is a result of the ongoing COVID-19 Emergency Declaration issued in March 2020. The due date is automatically postponed from April 15, 2021 to May 17, 2021; there is no need to file an extension to receive this relief.

March 30, 2021

The IRS has issued Announcement 2021-7, indicating that amounts paid for personal protective equipment (PPE)—such as masks, hand sanitizer, and sanitizing wipes—that are primarily used to prevent the spread of COVID-19, are treated as amounts paid for medical care under Internal Revenue Code Section 213(d). As a result, these items are now eligible to be paid or reimbursed under health flexible spending accounts (health FSAs), health reimbursement arrangements (HRAs), and health savings accounts (HSAs).

On March 11, 2021 President Biden signed the American Rescue Plan Act of 2021 (ARP), which provides financial relief to employers and employees affected by the COVID 19 pandemic. The legislation included several provisions affecting health benefits: