Why Establish a Fiduciary Committee for Welfare Benefit Plans?

Many plan sponsors have read about the lawsuit filed against Johnson & Johnson alleging that it breached its fiduciary duties with regard to the prescription drug component of its group health plan, causing participants to “overpay” for their prescriptions. Lewandowski v. Johnson & Johnson (Case No. 1:2024cv00671), filed February 5, 2024, in the federal district …

10 Important Issues For Employers During the 2024 Open Enrollment Season

Open enrollment is rapidly approaching for employers with calendar-year employee benefit plans. Following are ten important issues for employers to consider for the 2024 open enrollment season: Affordability of Group Health Plan. If the employer is an applicable large employer, make sure that the employee contribution for full-time employees for at least one of the …

End of the COVID-19 Emergency – Impact on Employee Benefit Plans

On March 29, 2023, the Departments of Labor (“DOL”), Health and Human Services (“HHS”), and Treasury (the “Departments”) published FAQs Part 58 on the Families First Coronavirus Response Act (“FFCRA”), the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), and the Health Insurance Portability and Accountability Act (“HIPAA”), providing guidance on the impact …

Reproductive Healthcare Issues for Employers Series, Part I: May Abortions be Reimbursed on a Tax-Free Basis from a Health Flexible Spending Account, a Health Reimbursement Arrangement, or a Health Spending Account?

Dickinson Wright’s All Things HR Blog is beginning a multi-part series on issues and questions faced by employers in response to the June 24, 2022, U.S. Supreme Court ruling in Dobbs v. Jackson Women’s Health Organization overruling the constitutionally protected right to an abortion and giving each state the right to ban or regulate access …

Administration of Group Life Insurance – Not So Easy?

Group life insurance is perhaps the most common of the benefits provided by employers who sponsor employee benefit programs. Many times employees are given the opportunity to purchase supplemental coverage in addition to the employer-provided basic benefit. Administering a group life insurance plan is easy – right?  It’s just a matter of enrolling the employee, …

ACA Affordability Threshold for 2021 Announced

The IRS recently announced the ACA affordability threshold for 2021 at 9.83%, a small increase from the 2020 level of 9.78%. In order to avoid triggering a penalty under Section 4980H(b) of the Internal Revenue Code (the “Code”), an applicable large employer must offer full-time employees health plan coverage that provides minimum value and is …

Benefits Briefs in the Time of COVID-19, Part 9: Additional Flexibility for Cafeteria Plans; Increase in Health FSA Carryover Amount

In Notice 2020-29, the IRS gave plan sponsors additional flexibility to allow participants to make certain mid-year cafeteria plan election changes during calendar year 2020 without regard to the restrictions that typically apply, and to adopt an extended claims period for flexible spending accounts (“FSAs”).  In Notice 2020-33, the IRS has increased the $500 carryover …

Benefits Briefs in the Time of COVID-19, Part 8: COBRA Complications

The DOL and IRS recently issued final regulations (the “Final Rule“) that extend notice and premium payment periods for participants and plans under COBRA.  Specifically, a group health plan must disregard the period from March 1, 2020 through 60 days after the announced end of the COVID-19 national emergency (the “Outbreak Period”) in determining, among …

Benefits Briefs in the Time of COVID-19, Part 6: Special Considerations for Mid-Year Changes to Cafeteria Plan Elections

Section 125 cafeteria plan elections are irrevocable for the plan year unless the participant experiences a change in status or other event that allows an election change under the Section 125 regulations. Common status change events that may be occurring due to the pandemic include the following: A commencement of an unpaid leave of absence. …