Retiree Health Plans – Beware of What you Wish for

in Affordable Care Act, Retiree Benefits

Our September 28th blog entry discussed retiree-only plans and that to solidify their exemption from the ACA employers should put those benefits into separate ERISA plans.  For months, some attorneys have been hammering away at the Departments regarding this issue (but I'm not sure why).  Well, now the Departments have addressed the issue, and while it is still inconclusive, I don't think the end result looks pretty.

Today, the Departments issued another round of guidance - called Part III...Continue Reading

Form W-2 Reporting Delayed

in Affordable Care Act, Tax Issues

The Affordable Care Act provides generally that the aggregate cost of employer-sponsored health coverage must be reported on a Form W-2.   For this purpose, the aggregate cost is to be determined under rules similar to the rules for COBRA continuation coverage.  This rule is effective for taxable years beginning on or after January 1, 2011.  See, Code Section 6051(a)(14).

This morning, the IRS issued Notice 2010-69, which stated that the Form W-2 reporting requirement is not...Continue Reading

DOL FAQs Part II – Rescissions and More

in Affordable Care Act

On this Columbus Day the government is closed (and some of the downtown subway system, which is another topic entirely), but the Department of Labor is still releasing Affordable Care Act guidance.  This guidance in the form of FAQs was placed on the web this morning and is joining the other set of FAQs previously released on September 20th.  The new set of Affordable Care Act FAQs - aptly named Part II by the DOL - includes questions on grandfathering, rescissions, and preventive...Continue Reading

ERRP Plan Participant Notice

in Affordable Care Act

The requirement to distribute ERRP notices to plan participants have caught some plan sponsors by surprise.  In general, if you will be receiving ERRP funds, you must distribute a required model notice to plan participants.  The notice must be sent no later than when you begin to receive the ERRP funds.  However, plan sponsors can distribute the notice earlier, and many are planning to distribute the notices with their annual enrollment materials for 2011.  For a copy of the model...Continue Reading

Mini-Med Plans – Round 2

in Affordable Care Act

As I previously discussed, HHS has indicated a willingness to make an exception in the upcoming MLR regulations for mini-med plans.  However, currently, it is unclear how and to what extent that exception will apply.  Unfortunately, employers need to make decisions now for annual enrollment materials.  Because no one knows what the MLR exception will look like, one solution to this issue is to simply self-insure your mini-med option.  A self-insured mini-med option is not subject to the...Continue Reading