May 14, 2012 Background.  Beginning in 2014, eligible individuals may receive a premium tax credit to help them purchase health insurance coverage through an Insurance Exchange (“Exchange”).  The premium tax credit can be paid in advance to a taxpayer’s insurance company to help cover the cost of premiums. As a result, the Exchange will need to determine if an individual is eligible for the premium tax credit at the time that he or she applies for health insurance. Determination Methodology.  In order for the Exchange to determine if an individual is eligible to receive the premium tax credit, the Exchange… Read more

May 11, 2012 Effective January 1, 2013, the annual limit on salary reduction contributions to health flexible spending accounts (“FSAs”) will be reduced to $2,500. Impact on Non-Calendar Year Health FSAs. Currently, there is uncertainty in how the new $2,500 applies to non-calendar year health FSAs.  Unless the IRS issues transitional relief for non-calendar year health FSAs, it appears that the calendar year limitation for health FSAs will apply same way as the contribution limit for dependent care FSAs. Thus, health care FSA salary reduction contributions made in the 2013 calendar year will be subject to the limit, even if an employee’s… Read more

May 10, 2012 On April 17, 2012, the Department of Health and Human Services (HHS) proposed rules to assign a unique health identifier to certain health plans that transmit health care transactions electronically.  These proposed rules are of particular interest to sponsors of self-funded group health plans. Background. Currently, health plans are identified in electronic health care transactions by multiple identifiers that differ in length and format. For example, insurance carriers are typically identified by the National Association of Insurance  Commissioners’ (NAIC) Company code while self-funded plans typically use the 9-digit Employer Identification Number assigned by the IRS. To address this… Read more

The IRS has announced the 2013 limitation amounts for Health Savings Accounts as determined under Code Section 233.  The new limits for 2013 are as follows: Limit 2012 2013 HSA Contribution – Single Coverage $3,100 $3,250 HSA Contribution – Family Coverage $6,250 $6,450 Age 55+ Catch-Up Contribution $1,000 $1,000 HDHP Minimum Deductible – Single Coverage $1,200 $1,250 HDHP Minimum Deductible – Family Coverage $2,400 $2,500 HDHP Out-of-Pocket Maximum – Single Coverage $6,050 $6,250 HDHP Out-of-Pocket Maximum – Family Coverage $12,100 $12,500

May 1, 2012 The IRS is preparing to propose new regulations related to the Health Care Reform Act.  To assist in this process, it issued three notices last week to solicit comments from the benefits community.  Specifically, the IRS is requesting comments on (i) calculating “minimum value” for purposes of the unaffordability penalty, and (ii) coordinating the filing requirements imposed on plan sponsors and the issuer of the actual coverage (i.e., the insurance carrier or the employer for self-funded coverage).  Below is a summary of each notice and its potential impact on plan sponsors. NOTICE 2012-31 Calculation of Minimum Value… Read more

April 27, 2012 The Department of Health and Human Services (“HHS”) has issued final regulations creating a national reinsurance program to stabilize premiums for individual health insurance coverage offered through the Health Insurance Exchanges (“Exchanges”).  The reinsurance program will be funded by fees imposed on insurance carriers and third party administrators (“TPAs”) of self-funded group health plans for the first three years the Exchanges operate.  These fees or “contributions” will then be re-distributed to insurance carriers that provide individual health coverage to high risk individuals through the Exchanges. The following outlines how the program will impact group health plans. $25… Read more

February 2, 2012 Today, the Department of Labor finalized what were “interim final regulations” and in doing so, delayed the effective dates of its new fee disclosure regulations by an additional 3 months. The new deadlines for the initial disclosures are: Service-Provider Disclosure-July 1, 2012 Annual Participant Fee Disclosure for Calendar Year Plans-August 30, 2012 Quarterly Participant Fee Disclosure for Calendar Year Plans-November 14, 2012 The Department of Labor also made a few tweaks and clarifications to its previously issued service-provider disclosure regulations. Contact Information. For more information, please call Toby Walls (404-888-8870) or Angela Roberts (404-888-8822). Please click here for a PDF… Read more

Washington, D.C. and Michigan have changed their state and local income tax rules applicable to distributions from tax-qualified retirement plans. The affected plans include 401(k), defined benefit, profit sharing, employee stock ownership, and 403(b) plans. These changes were effective January 1, 2012. Washington, D.C. Creates Mandatory Withholding. The state and local income withholding rules in Washington, D.C. have changed so that local income tax withholding, at a rate of 8.95%, is mandatory for all qualified retirement plan distributions that are subject to federal withholding. Previously, withholding in this jurisdiction was optional. Michigan. The state and local income tax rules in… Read more

December 12, 2011 Recent amendments to the San Francisco Health Care Security Ordinance (“HCSO”) change the administrative requirements for health reimbursement accounts and impose additional notice and reporting requirements.  These amendments are effective January 1, 2012.   Who is Covered.  An employer is covered by the HCSO if it (i) employs 20 or more employees, (ii) does business within the City and County of San Francisco, and (iii) is required to maintain a San Francisco business registration certificate. What is Required.  The HCSO requires covered employers to spend a minimum amount of money each quarter on health care expenditures for employees… Read more