Employee Benefits Insights – Woodruff Sawyer

Employment Trends & Employee Benefits: The US in 2019

According to the Bureau of Labor Statistics report, the US national unemployment rate rose by 0.1% from December 2017 to December 2018. The government shutdown accounted for an increase of 175,000 in temporary layoffs and part-time workers increased nearly 500,000. The total number of unemployed persons stands at 6.5 million, with less than 20% experiencing long-term unemployment.

International Benefits Update ‒ Q1 2019

Facing rising healthcare costs and rapidly aging populations, legislatures continue to mandate supplemental retirement and medical programs to ensure the health and financial well-being of their citizens.… More

District Court Judge in Texas Strikes Down the ACA – But Law Remains In Effect for Now

On Friday, December 14, a federal judge in Texas issued a partial ruling that strikes down the entire Affordable Care Act (ACA) as unconstitutional.… More

IRS Announces Inflation Adjusted Health FSA and Commuter Benefit Limits For 2019

The IRS issued Rev. Proc. 2018-57 with the 2019 inflation adjustments to the maximum annual contribution limits for Health FSAs and Commuter Benefits.… More

Massachusetts Employers Must File HIRD Form By November 30th

As part of Massachusetts’ expanded Employer Medical Assistance Contribution (EMAC) program, employers with 6 or more employees in Massachusetts must submit a health insurance responsibility disclosure (HIRD) form annually, which collects information about employer-sponsored health insurance offerings.… More

Compliance Alert: DOL Releases Final Rule Expanding Association Health Plans

The US Department of Labor (DOL) has issued a final rule expanding the opportunity of unrelated employers of all sizes (but particularly small employers) to offer employment-based health insurance through Association Health Plans (AHPs).… More

Compliance Alert: IRS Releases 2019 HSA Contribution Limits and HDHP Deductible and Out-of-Pocket Limits

In Rev. Proc. 2018-30, the IRS released the inflation adjusted amounts for 2019 relevant to HSAs and high deductible health plans (HDHPs). The ACA’s out-of-pocket limits for in-network essential health benefits have also been announced and have increased for 2019.

Compliance Alert: Agencies Issue Guidance on Mental Health Parity Issues, Signal Enhanced Enforcement

On April 23, 2018, the Departments of Labor, Treasury, and Health and Human Services released several pieces of guidance on issues arising under the Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA), including 2017 enforcement actions, guidance on mental health parity implementation, and an action plan for enhanced enforcement in 2018.

Compliance Alert: EEOC’s Status Report in AARP v. EEOC Creates Uncertainty for Wellness Programs

Employers continue to face uncertainty as to wellness program incentives subject to the ADA and GINA (i.e., those with medical exams or disability-related inquiries) as the EEOC awaits confirmation of Janet Dhillon as EEOC Chair and considers “a number of policy choices available.” In other words, the EEOC may wait until the Senate confirms outstanding nominations before re-engaging in the rulemaking process, leaving wellness programs open to challenge in 2019 by employees who feel that the incentives (or penalties) are so great that they render the program involuntary.

Compliance Alert: CMS Extends Transition Relief for Non-Compliant Plans through 2019

On April 9, 2018, the Centers for Medicare & Medicaid Services (CMS) announced a one-year extension to the transition policy (originally announced November 14, 2013 and extended several times since) for individual and small group health plans that allows issuers to continue policies that do not meet ACA standards. The transition policy has been extended to policy years beginning on or before October 1, 2019, provided that all policies end by December 31, 2019.

Compliance Alert: IRS Adjusts 2018 HSA Contribution Limit – Again

The IRS has announced it is modifying the annual limitation on deductions for contributions to a health savings account (“HSA”) allowed for taxpayers with family coverage under a high deductible health plan (“HDHP”) for the 2018 calendar year. Under Rev. Proc. 2018-27, taxpayers will be allowed to treat $6,900 as the annual limitation, rather than the $6,850 limitation announced in Rev. Proc. 2018-18 earlier this year.

Looking Ahead: Considerations For The Employee Benefits Landscape In 2018

The current landscape of health care and employee benefits—which has become unrelenting in its complexities, compliance requirements, and rising costs—is requiring all of us to think and act differently. In this inaugural issue of our annual Employee Benefits Looking Ahead Guide, we highlight key trends we’re seeing, provide insight into some exciting developments that are pulling the industry forward, and share advice on how you can start thinking about your 2018 strategy.