Pre-Tax Benefit Limit Increases for 2017

With the end of the year soon upon us, we wanted to remind you of the new contribution limits for various taxed deferred accounts for 2017.  The IRS released the new limits a couple months ago and yet again increased many of the limits.

New HRA Guidlines For Small Businesses

The Senate recently passed the 21st Century Cures Act ("Act"). The House had passed it the week before.  The President is expected to sign it in the next few days. 

This Act contains provisions for "Qualified Small Business Health Reimbursement Arrangements" ("HRA"). This new HRA would allow eligible small employers to offer a health reimbursement arrangement funded solely by the employer that would reimburse employees for qualified medical expenses including health insurance premiums.  

Upcoming Webinar Reviewing New Overtime Rules for "White Collar" Employees

Please join Larry Grudzien legal consultant to Better Business Planning for a free webinar on Novemebr 17th. at 1:00 pm (Central Time).

This webinar will focus on reviewing the coming changes, and how to address potential issues before the rule becomes effective.

PCORI Fee to Increase

In Notice 2016-64, IRS increased the patient-centered outcomes research Institute (PCORI) fee for a health plan or policy years ending on or after October 1, 2016

OSHA Regulatory Update

While significant focus has been paid to the new amendments and the obligations of covered employers to come into compliance with the electronic reporting requirements, there have been several developments at OSHA that are much less talked about and that apply to all employers. Specifically, OSHA has articulated new expectations and requirements with regard to employer policies that relate to reporting workplace injuries and illnesses.

2017 BCBS Pharmacy Changes

As many of you know, Blue Cross Blue Shield, as well as other insurance carriers, are in the process of cutting down on costs to try and deal with the effects of the affordable care act.  One way BCBS is doing this is by changing their pharmacy coverage starting January 1st.

Compliance 101: Section 125 POP Plan

Today we will be looking at what a Section 125 Premium Only Plan, commonly referred to as a POP Plan, is and why as a business owner you need it. 

A POP Plan is a pre-tax salary reduction plan that allows employees to pay for group insurance premiums out of their paycheck tax free.  If your business offers a group plan that employees contribute to, you are required by law to have the POP Plan document.  You must distribute this document and a Summary Plan 

 Description to your employees. You must also keep a record that employees have agreed to let you reduce their payroll to pay their portion of the premium.

With the Department of Labor starting to crack down on group plans, stating they will audit every plan within the next five years, it is critical to have this document and distribute it if you offer a group plan.  Over the last year, when the DOL has gone in to audit group plans almost one third of plan sponsors have had to play over $10,000 in fines.  The DOL has said this is in large part to groups not having a POP Plan on file or not distributing it to employees. 

If you have any questions on how to make sure your group plan is compliant with DOL regulations or any questions concerning the POP Plan contact us at 630-773-2228 and you can speak with one of our legal experts. Stay tuned for more information about compliance rules and regulation concerning your group plans as we will be sending out more articles in the coming weeks.

How the Blocking of the Aetna and Humana Merger Affects Your Group Insurance Plan

The federal government announced a few days ago that it decided to act against Aetna trying to acquire rival insurance carrier Humana.  This news comes only weeks after the government also blocked a merger between Anthem and Cigna.  Aetna is now threatening to decrease its presence in the Affordable Care Act (ACA) exchange to no more than 10 states.

Land Of Lincoln Health and ACA Update

On July 5th the Illinois Department of Insurance took actions to try and save the struggling nonprofit Affordable Care Act start up Land of Lincoln Health (LLH).  The department ordered LLH to stop renewing policies for large and small business, stop selling new plans unless authorized, and not to pay $31.8 million it owes

Land of Lincoln Finished?

As many of you probably already know the Illinois non-for-profit insurance carrier Land of Lincoln has struggled to succeed since its founding.  Unfortunately, for those of you covered by Land of Lincoln may be forced to switch carriers in the near future.

EEOC Releases New ADA Wellness Notice

The Equal Employment Opportunity Commission (EEOC) recently posted a sample notice for employer-sponsored wellness programs that must comply with Americans with Disabilities Act (ADA) regulations that were recently issued.

Why Small Businesses Need To Offer Medical Plans Now More Than Ever:

In 2010, Congress passed the Affordable Care Act, which changed the world of insurance forever.  Since 2010 we have seen the cost of individual insurance increase drastically. This year alone Blue Cross Blue Shield of Texas is asking to increase premiums by as much as 60%.  This is not good because most other states usually follow along with what Texas does. This means nationwide people with individual insurance plans could see rate increases anywhere from 40-60%. First, let’s take a look at why rates are going up and then discuss what is going to happen and what needs to be done.

The Ins and Outs of Tobacco vs. Non-Tobacco Rates

Many of our current clients, as well as small businesses across the country, are considering introducing tobacco vs. non-tobacco rates.  This article can be your cheat sheet for figuring out if the rates are right for you and how to introduce them to employees.

What rates can you charge?

There are essentially three options when it comes to tobacco rates.

1. Charge up to a 50% differential for employees that self-report
2.  Up to a 30% differential when clinical testing is used to determine if there is tobacco use
3.  A flat $50/month fee

The most common are charging the $50 a month fee because it makes the individual changes easier.

Commuter Benefits Program

If I told you that you could set up a benefit plan for your employees at virtually no cost, I bet you would be interested. The government allows a Commuter Benefit plan to be set up using pre-tax dollars to pay for transit expenses associated with your everyday commute.

This program is a win for both employer and employee. Employers save money on all pre-tax dollars as employers do not need to pay the FICA match. Employees will save on federal, FICA and in most cases state tax.  If your employee has to pay for parking or almost any form of public transportation there is no reason not to have this program.

New Overtime Pay Rule

Last Wednesday (5/18/16), The US Department of Labor updated the rules for who is eligible for overtime pay.  Currently, for most businesses, a salaried employee that makes more than $23,660 annually and works more than 40 hours a week is not legally entitled to overtime pay, or 1.5 the normal pay rate.

Starting December 1, 2016, the $23,660 threshold will more than double to $47,476 annually or $913 a week.  This change means any employee in your business that makes under the $47,476 annual threshold will have to have their hours tracked to pay employees accurately for going over 40 hours a week. With this change, the Department of Labor estimated 4.2 million workers will now be eligible for overtime pay.