PCORI Fee Amount Adjusted for 2021

The Affordable Care Act (ACA) imposes a fee on health insurance issuers and self-insured plan sponsors in order to fund comparative effectiveness research. These fees are widely known as Patient-Centered Outcomes Research Institute (PCORI) fees, and were originally scheduled to expire for plan or policy years ending on or after Oct. 1, 2019. However, a federal spending bill enacted at the end of 2019 extended the PCORI fees for an additional 10 years.

10 Pandemic-Related Challenges Likely to Plague Employers in the Future

While employees and employers alike have been eager (for months now) to get back to work as it used to be, the reality is that the workplace has changed — and possibly for the long term. Speculation abounds that this “new normal” will persist until there is a widely available and effective vaccine. This leaves employers in limbo — juggling the new day-to-day legal concerns and practical difficulties, such as enforcing proper social distancing and addressing refusals to return to work, while trying to maintain productivity and profitability to keep businesses afloat.

Application Deadline for Small Business Loans Extended

Congress has passed legislation to extend the application deadline for a Paycheck Protection Program (PPP) loan through Aug. 8, 2020. Prior to the extension, the deadline to apply for these funds was June 30, 2020. The extension enables eligible small businesses to apply for funding for five more weeks. The legislation has been sent to President Trump, who is expected to sign the measure into law.

DOL Revises the Fluctuating Workweek Overtime Method

The U.S. Department of Labor (DOL) recently announced a final rule that allows employers to pay bonuses or other incentive-based pay to salaried, nonexempt employees whose hours vary from week to week. The final rule clarifies that payments, in addition to the fixed salary, are compatible with the use of the fluctuating workweek method under the Fair Labor Standards Act (FLSA).

2020 Minimum Wage Rates

The current federal minimum wage rate is $7.25 per hour. However, many states have adopted minimum wage rates higher than the federal rate. When the state rate and the federal rate are different, employers must pay their employees the higher rate. The following states have announced new minimum wage rates for 2020:

Handling a DOL Audit with Ease

At any given time, your organization may be selected for a U.S. Department of Labor (DOL) civil investigation (commonly known as an audit) to ensure that your employee benefit plans are in compliance. The Employee Retirement Income Security Act of 1974 (ERISA) establishes standards governing the operation of employee benefit plans and grants the DOL investigative authority.

Traditionally, DOL audits of employee benefit plans have focused primarily on retirement plans, such as 401(k) plans. However, now that the DOL has started enforcing compliance with the Affordable Care Act (ACA), health plan audits are on the rise.

Depending on the complexity of your plan design, availability of documents, degree of cooperation between the DOL and your plan administrators, and the number of potential violations, an audit can take anywhere from several weeks to over a year.

IRS Revises Some Benefit Limits for 2018

In direct response to President Trump's October 2017 Executive Order, the Departments of Health and Human Services (HHS), Labor, and the Treasury (the Departments) issued a proposed rule today that is intended to increase competition, choice, and access to lower-cost healthcare options for Americans. The rule proposes to expand the availability of short-term, limited-duration health insurance by allowing consumers to buy plans providing coverage for any period of less than 12 months, rather than the current maximum period of less than three months. The proposed rule, if finalized, will provide additional options to Americans who cannot afford to pay the costs of soaring healthcare premiums or do not have access to healthcare choices that meet their needs under current law.

IRS Announces New Benefit Amounts

The Internal Revenue Service announced in Revenue Procedure 2017-58  the annual inflation adjustments for more than 40 tax provisions for 2018, including the tax rate schedules, and other tax changes. This Revenue Procedure provides details about these annual adjustments: 

Senate Republicans Unveil New Health Bill but Divisions Remain

By ROBERT PEAR and THOMAS  KAPLAN

New York Times

WASHINGTON - Senate Republican leaders unveiled a fresh proposal to repeal and replace the Affordable Care Act, revising their bill to help hold down insurance costs for consumers while keeping a pair of taxes on high-income people that they had planned to eliminate.

What is an HSA?

As I had mentioned in my 60 Second Update, this week will be for giving an introduction into HSAs, FSAs and HRAs.  Today’s post will cover what is an HSA, how do you qualify for an HSA account and how does an HSA work.

Repeal, Replace … Revise: Your Guide To How A Trump Proposal Might Change ACA Insurance

This article was original published by Kaiser Health News: By Julie Appleby April 13, 2017

Repeal and replace is on-again, off-again, but that doesn’t mean the rules affecting your insurance will remain unchanged.

The Trump administration late Thursday issued a final rule aimed at stabilizing the health law’s insurance marketplace that could have rapid, dramatic effects on people who do not get insurance through work and buy it on the Affordable Care Act’s exchanges.

What is the Cadillac Tax?

With the AHCA or the ACA repeal and replace bill being stopped, there are still a few provisions of the ACA that are set to go into place in the coming years.  The most talked about is the Cadillac Tax.

What is an ERISA Wrap Document? And Why Your Company Probably Needs One

One problem I encounter when meeting with a business owner, controller or HR executive is that the company that I am trying to help does not have the correct compliance documents in place for their health

Proposed ACA Replacement

Today several Republican Senators proposed a partial replacement of the Affordable Care Act. This bill being called the Patient Freedom Act would allow states to opt to stay with the Affordable Care Act or receive similar amounts of Federal money which consumers could use to pay for health insurance or medical care.  The purpose of the bill would be to give that power to the states of how to deal with health care and insurance.

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

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.

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.