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Beginning in 2016, the definition of “small employer” for insurance rating and underwriting purposes changes. In general, employers with 51–100 full-time equivalents (FTEs) may now fall into the small employer category, and such groups will be subject to community rating and required to offer essential health benefits for the first time. However, transition relief issued by the Department of Health & Human Services (HHS) and the Centers for Medicare & Medicaid Services (CMS) allows states and insurers to choose to renew current policies through October 1, 2016. In other words, depending upon which state the insurance policy is being issued out of, employers with 51–100 FTEs who would otherwise be required to purchase a small group policy beginning in 2016 may have the option to renew their current policies through October 1, 2016.

Last week the U.S. Supreme Court ruled in Obergefell v. Hodges that all states must permit same-sex marriages within their borders and must recognize same-sex marriages performed in other states. This ruling puts to rest some of the big questions and the confusion that remained after the Court’s ruling on same-sex marriage and DOMA in 2013. Many employers must now consider how this decision affects their benefit plans.

Company executives need to understand the coverage provided by countries local reinsurance pools to best manage the unfortunate reality of terrorism risk. The unpredictable nature and potential severity of a terrorism event make it a difficult peril for insurers to include in the property policy. In order for insurance companies to offer coverage while protecting their own solvency, they can transfer or share the risk through reinsurance mechanisms. Many countries have thus created reinsurance pools (typically government-organized) for insurers writing business within their borders, but its not a perfect system.

For purposes of individual eligibility for tax subsidies through a public exchange, and for compliance with the employer shared responsibility rules under Section 4980H, it is important to understand whether or not coverage offered under an employer-sponsored group health plan is “affordable.” When setting plan contribution rates employers must consider IRS employer affordability safe harbors, the various elements that play into the determination of the employee contribution, and the penalties associated with failing to offer affordable coverage.

In a 6-3 decision, the Supreme Court has ruled that Affordable Care Act (ACA) subsidies will continue to be available to certain individuals who purchase health insurance plans in states that use the federal Marketplace. This decision is important for employers as they work to implement the strategies necessary to comply with ACA employer requirements.

Employers who sponsor self-funded medical plans must report and pay the ACA Patient-Centered Outcomes Research Institute (PCORI) fees no later than July 31, 2015. Health insurance carriers/insurers will pay the fee directly in the case of fully-insured plans.

The California Fair Employment and Housing Council issued updates to the California Family Rights Act (CFRA), which will take effect July 1, 2015. The changes clarify some CFRA positions, and modify the law to more closely align with the federal Family and Medical Leave Act (FMLA).