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Supreme Court to Consider Health Care Reform Law

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The Supreme Court has agreed to review several challenges to health care reform, most likely in March, with a decision in June. While the fact that the court has agreed to hear the case is not surprising, the time allotted to oral arguments highlights the significance of the case and the complexity of the issues involved – five and a half hours instead of the usual one.
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Categories: Health Care Reform | Tags:
On Friday November 4, 2011 Wisconsin Governor Scott Walker signed into law legislation that adopts the federal income tax treatment of employer-provided health coverage of adult children who have not attained age 27 as of the end of the tax year for Wisconsin state income tax purposes. Prior to this recent change, Wisconsin was the only remaining state that had not adopted the federal income tax treatment. The change is effective retroactive to January 1, 2011.
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Categories: Benefits in General | Tags:

Health Care FSA $2,500 Limit

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You may have heard that health care reform imposes a $2,500 limit on annual salary reduction contributions to Health Care FSAs, effective for taxable years beginning after December 31, 2012. The $2,500 limit is indexed for inflation for taxable years starting with 2014. As we await more guidance from the IRS, we’d like to discuss a few issues related to the limit and offer some examples to help you in the interim.
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Categories: Health Care Reform | Tags: Health Care FSA

Back to Basics: Cafeteria Plan Benefits

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Remember that a cafeteria plan is a plan that offers employees a choice between taxable benefits and qualified benefits. Only qualified nontaxable benefits can be offered under a cafeteria plan.
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Categories: Benefits in General | Tags: Cafeteria Plan

Uniform Coverage and the Health FSA

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The Uniform Coverage Rule requires that “the maximum amount of reimbursement from a health FSA must be available at all times during the period of coverage (properly reduced as of any particular time for prior reimbursements for the same period of coverage).” Prop. Treas. Reg. §1.125-5(d)(1).
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Categories: Benefits in General, Compliance | Tags: Health FSA , Uniform Coverage Rule

HIPAA Special Enrollment Rights

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The Health Insurance Portability and Accountability Act ("HIPAA") provides certain special enrollment rights for group health plan participants when a participant gets married, has a new child through birth, adoption or placement for adoption, or loses coverage due to their spouse’s or dependent’s loss of coverage.
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Categories: | Tags: HIPAA

Health Care Reform Headed to Supreme Court

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In August, the Eleventh Circuit Court of Appeals rejected the individual mandate provision of the Obama administration’s health care reform law, that everyone must purchase insurance or be covered by an employer’s group health plan, as a “wholly novel and potentially unbounded assertion of congressional authority,” but upheld the rest of the law. The Eleventh Circuit was one of three federal courts of appeal that have issued decisions on the law so far – all reaching different conclusions....
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Categories: Health Care Reform | Tags:

2011 – 2012 IRS Project Plan

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The IRS released their project plan for 2011-2012. The plan includes items that the IRS and Treasury would like to address. Here are some of the items in the plan that impact employee benefits:
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Categories: Benefits in General | Tags:
Wisconsin recently amended state insurance statute 632.885 to conform to federal regulation that requires health plans to cover eligible children at least to age 26. The new state law is effective as health insurance plans renew on or after January 1, 2012.
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Categories: | Tags: cobra , dependent

MLR’s Potential Effect on HRAs and HSAs

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The Patient Protection and Affordable Care Act (PPACA) contains Medical Loss Ratio (MLR) provisions that require insurance companies to spend at least 80% of revenue on health care for small employers and 85% of revenue for large employers. If the insurance company fails to meet these new standards, the new provision will require the insurance companies to provide a rebate beginning in 2012.
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Categories: Health Care Reform | Tags: Medical Loss Ratio , HSA , HRA