While the sweltering roil of temporary regulatory changes related to the COVID-19 pandemic may have cooled and the initial burst of SECURE 2.0 steam begins to dissipate, sponsors of employee benefit plans should keep their eyes on several hot button issues during the remainder of 2024 as these issues continue to percolate.Continue Reading Caution! Contents Hot: Key Benefits Issues to Watch During the Remainder of 2024
UPDATE: Planning for Open Enrollment? Note the ACA Affordability Threshold Drop
This post was updated on February 6, 2024, to reflect the 2024 Federal Poverty Level announced in January 2024.
On August 23, 2023, the Internal Revenue Service issued Rev. Proc. 2023-29, announcing that the Affordable Care Act (ACA) affordability threshold will be 8.39% for plan years beginning in 2024, a substantial decrease from the 9.12% affordability threshold set for plan year 2023. This marks the largest change yet in the affordability thresholds year-over-year. The affordability threshold is used to determine whether employer-sponsored health coverage is affordable for purposes of the ACA’s employer-shared responsibility provisions.Continue Reading UPDATE: Planning for Open Enrollment? Note the ACA Affordability Threshold Drop
Let the Plan Speak: First Gag Clause Attestation Due December 31, 2023
By December 31, 2023, group health plans and health insurance issuers must submit an attestation to certify compliance with the “gag clause prohibition” under the Consolidated Appropriations Act of 2021 (CAA).Continue Reading Let the Plan Speak: First Gag Clause Attestation Due December 31, 2023
Tenth Circuit Rules ERISA Preempts Oklahoma PBM-Reform Law
NOTE: This post was originally written August 29, 2023, and was updated on September 27, 2023.
Breaking news: On September 19, 2023, the Oklahoma Attorney General filed a Petition for En Banc Rehearing, challenging the Tenth Circuit panel’s decision in this case and requesting a rehearing before the full Tenth Circuit bench. The Oklahoma Attorney General argued in his Petition that the panel’s decision contradicted established Supreme Court precedent and recent circuit court decisions regarding the scope of ERISA preemption, failed to address the ERISA “savings clause,” and was overbroad in its articulation of Medicare Part D preemption. On September 25, 2023, the Tenth Circuit ordered PCMA to respond to the Petition. We will provide further updates as this matter develops.Continue Reading Tenth Circuit Rules ERISA Preempts Oklahoma PBM-Reform Law
2023 ERISA Welfare Plan Automatic Participant Disclosures Checklist
We recognize that many companies sponsor ERISA welfare benefit plans and will soon be undergoing their open enrollment process and issuing related participant communications. To assist with that process, we have prepared an Automatic Participant Disclosures Checklist for use during open enrollment and throughout the plan year. Note that some of these disclosures may be
Flexible Spending Accounts: Require Substantiation or Risk Disqualification
On April 28, 2023, the IRS Office of Chief Counsel issued Chief Counsel Advice Memorandum 202317020 (CCA Memo), with an important reminder to employers who provide health and dependent care flexible spending arrangements (FSAs) under an Internal Revenue Code (Code) Section 125 cafeteria plan: a failure to adequately substantiate FSA expenses before reimbursement may result in the loss of the tax-free status of all benefits provided under the Code Section 125 cafeteria plan. Continue Reading Flexible Spending Accounts: Require Substantiation or Risk Disqualification
Insight on Tenth Circuit Ruling in PBM-Reform Law Challenge
I recently provided insight for an article in Benefits Pro examining the Tenth Circuit ruling that certain state regulation of pharmacy benefit managers (PBMs) is preempted by ERISA. Continue Reading Insight on Tenth Circuit Ruling in PBM-Reform Law Challenge
Amid Concerns, IRS Delays Required Roth Catch-Ups Until 2026 to Allow For Plan Compliance
Late last week, the Internal Revenue Service (IRS) issued guidance on Section 603 of the SECURE 2.0 Act with respect to catch-up contributions. The guidance includes a two-year administrative transition period – until 2026 – to implement the Roth catch-up contribution provisions under SECURE 2.0 and is in response to employer coalitions and industry groups who had voiced concerns about being able to timely implement those provisions. Continue Reading Amid Concerns, IRS Delays Required Roth Catch-Ups Until 2026 to Allow For Plan Compliance
New Proposed Mental Health Parity Rules Amid Report of Widespread Failure
On July 25, the Department of Labor, Department of the Treasury, and Department of Health and Human Services (the Departments) released new Proposed Rules (Proposed Rules) that clarify certain requirements imposed by the Mental Health Parity and Addiction Equity Act (MHPAEA). In addition to the new Proposed Rules, the Departments issued their annual MHPAEA report to Congress (Report) to detail recent enforcement efforts.Continue Reading New Proposed Mental Health Parity Rules Amid Report of Widespread Failure
Tolling No More: Preparing for the End of COVID-19 Emergency Declarations
On January 30, President Biden announced his intention to end the COVID-19 National Emergency (NE) and Public Health Emergency (PHE) effective May 11, 2023. Both emergency declarations resulted in various forms of relief for employer-sponsored benefit plans, and both have been extended several times since their inception nearly three years ago. While their impact on federal law differs, employee benefit plan sponsors and administrators should take note of the ending emergencies and their associated relief. Below is an overview of the impact that the end of this relief will have on employer-sponsored benefit plans.Continue Reading Tolling No More: Preparing for the End of COVID-19 Emergency Declarations