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.