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Total Articles: 7

Here Comes the Rain: Employers Offering Mental Health Benefits Should Prepare for More Scrutiny

Employers can expect some challenging information requests about the mental health and substance abuse benefits offered to employees and their dependents through group health plans, if a draft form released by federal regulators is any indication.

Don’t Forget Year-End Amendment to Cafeteria Plans Allowing Revocation for Marketplace Coverage

As the calendar year comes to an end, group health plan sponsors must remember that if they took advantage of the ACA relief of IRS Notice 2014-55, amendments to their cafeteria plans by year end are needed.

New IRS Guidance May Require Amendments to Section 125 ("Cafeteria") Plans

Many employers permit employees to pay for employer-sponsored health coverage, on a pre-tax basis, under Internal Revenue Code section 125 (“cafeteria”) plans. These plans generally require employees to make an irrevocable election to participate before the beginning of the health coverage period. Internal Revenue Service (IRS) rules typically do not allow mid-year changes to cafeteria plan elections, unless the employer adopts special change in status rules and incorporates those rules in a written cafeteria plan document. Change in status rules apply in fairly limited circumstances and generally permit prospective mid-year election changes only when an employee experiences certain personal status changes (e.g., family, residence, employment) or when there are significant cost or coverage changes under the employer’s health plan. Moreover, the cafeteria plan consistency rule requires any proposed election change to be consistent with the employee’s status change.

Deadline Looming To Amend Cafeteria Plans

The healthcare reform laws enacted a provision that restricts healthcare flexible spending arrangements (Health FSAs) and health reimbursement arrangements (HRAs) from reimbursing amounts expended by participants and their dependents in various ways.

Reminder: Cafeteria Plans May Need to be Amended for Health Care Reform Over-the-Counter Requirements

If you sponsor a cafeteria plan and have not yet amended your plan to comply with the new requirements for over-the-counter drugs, you have until June 30, 2011 to adopt the necessary changes.

IRS Steps Up On Cafeteria Plans.

Nearly a quarter century after the Internal Revenue Service (IRS) started releasing piecemeal proposed regulations on cafeteria plans, employers now have new, updated guidance from the IRS on important topics such as nondiscrimination testing and debit card programs. Not final regulations, mind you, but at least a new set of coordinated proposals to replace the old ones.

IRS Steps Up On Cafeteria Plans.

Nearly a quarter century after the IRS started releasing piecemeal proposed regulations on cafeteria plans, employers now have new, updated guidance from the IRS on important topics such as nondiscrimination testing and debit card programs. Not final regulations, mind you, but at least a new set of coordinated proposals to replace the old ones.
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