Michelle’s Law is Still Alive (Barely)

in Affordable Care Act, Health Benefits

As noted in our August 17th post, many sponsors are applying the age 26 regulations to children as defined in IRC Section 152(f)(1). This means that other children, such as children of a legal guardian, children of a domestic partner or grandchildren, would not be covered by the mandatory age 26 rules. Thus, applicable plans could apply the usual dependency tests to these children as they have in the past (e.g., age 19 and age 25 if a full time student).  

If a plan sponsor did...Continue Reading

Texas Injury Plans

in Affordable Care Act, HIPAA Privacy & Security, Welfare Benefits

Under Texas law, employers can opt-out of the normal workers' compensation system by sponsoring a separate, self-insured plan for workplace injuries, typically referred to as a Texas Injury Plan. Texas Injury Plans are treated as ERISA group health plans and subject to the typical ERISA requirements, as well as the HIPAA privacy rules. Recently, some third-party administrators and plan sponsors have begun to review whether these types of plans are covered by the Affordable Care Act, and...Continue Reading

Definition of “Child” for Age 26 Requirements

in Affordable Care Act, Health Benefits

The age 26 regulations require all applicable plans to cover dependant children until they reach age 26. Unfortunately, the regulations created tremendous uncertainly by not providing for a definition of "child." Therefore, plan sponsors do not know to which classifications of children the age 26 rules should apply. However, hope may be on the horizon. Last week, a meeting took place with DOL/IRS/HHS and as part of this meeting, industry attendees suggested that the age 26 rules...Continue Reading