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, …
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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 …
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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 …
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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. …
Benefits Briefs in the Time of COVID-19, Part 4: Reimbursement of Over-the-Counter Medications
Congress has reversed course and amended the Internal Revenue Code (“Code”) to provide that a health flexible spending account (“health FSA”), health savings account (“HSA”) and health reimbursement account (“HRA”) may reimburse employees for over-the-counter medications, effective January 1, 2020. Background For many years, health FSAs, HSAs and HRAs did not consider a non-prescription drug …
Benefits Briefs in the Time of COVID-19, Part 2: Temporary Expansion of Educational Assistance Programs to Cover Employees’ Student Loan Debt
The CARES Act gives employers a way to pay employees’ student loan debt on a pre-tax basis during a portion of 2020 through an educational assistance program under Section 127 of the Internal Revenue Code (“Code”). Overview of an Educational Assistance Program Under a Section 127 educational assistance program, an employer may pay or reimburse …
High Deductible Health Plans and Expenses related to COVID-19
Many of the nation’s largest insurers have announced that they will be waiving the deductible or other cost-sharing for testing or other expenses related to the 2019 Novel Coronavirus (“COVID-19”). Plan sponsors that offer coverage to employees through a high deductible health plan (“HDHP”) asked whether this waiver would affect the health plan’s status as …
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Changes Affecting Employer-Sponsored Health Plans in the 2020 Appropriations Act
The 2020 appropriations act, which was signed into law by the President on December 20, 2019, contains a mix of good and bad news for employer-sponsored health plans. On the good news side of the ledger, several taxes imposed by the Affordable Care Act have been repealed, as follows: To literally no one’s surprise, the …
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