Voluntary Benefits

IRS Releases Guidance for Employers Offering Individual Coverage HRAs

On September 27, the Internal Revenue Service (IRS) released proposed regulations on the application of the Affordable Care Act’s (ACA) employer shared responsibility provisions to a new type of Health Reimbursement Arrangement (HRA) available starting in 2020.  In June 2019, the Department of Labor, the Department of Health and Human Services, and the Treasury Department (the “Departments”) released a final rule concerning HRAs that can be integrated with individual market coverage or Medicare.  This new type of HRA is referred to as an Individual Coverage HRA, or ICHRA.  The rule, based on an executive order from President Trump in 2017, is intended to increase the usability of HRAs, to expand employers’ ability to offer HRAs to their employees, and to allow HRAs to be used in conjunction with non-group coverage.

The ICHRA rule is effective for plan years beginning on or after January 1, 2020.  The IRS has also proposed regulations to guide employers in determining whether their contribution to an employee’s ICHRA results in an “affordable” offer of coverage under the ACA.  Specifically, the proposed regulations will assist employers who offer ICHRAs in determining the “required employee contribution” for purposes of line 15 of Form 1095-C.  Employers may continue to use the W-2, Rate of Pay, or Federal Poverty Level safe harbors to determine whether their entry in line 15 results in an “affordable” offer of coverage.  (See Example on page 3.)

The proposed regulations are effective for periods after December 31, 2019.  Employers may continue to rely on them during any ICHRA plan year beginning within six months from the publication of any final regulations.

 Proposed Safe Harbors

 The proposed regulations offer safe harbors for applicable large employers (ALEs), which are those who employed […]

By |October 29th, 2019|Compliance, Employee Benefits, Employee Communications, Health Care Reform, Human Resources, Legislation, Voluntary Benefits|Comments Off on IRS Releases Guidance for Employers Offering Individual Coverage HRAs

How Your Company Can Benefit From an Executive Reimbursement Plan

Today’s companies are constantly struggling to attract and retain good talent. And, most companies are offering special perks, or benefits to help do this. But, what about something a little more enticing than a parking spot that’s close to the entry door? What about an executive reimbursement plan? An executive reimbursement plan offers select executives, or group of employees chosen by an employer, additional medical, dental or eye coverage to pay the left over portion […]

By |July 28th, 2016|Employee Benefits, Human Resources, Voluntary Benefits|Comments Off on How Your Company Can Benefit From an Executive Reimbursement Plan

Taking Time to Make Good Open Enrollment Decisions

It’s unfortunate that many people take more time to choose their cell phone calling plan than they do making their annual employee benefit decisions during open enrollment. Making wise decisions about your benefits does require planning. By selecting benefits that provide the best care and coverage, you can optimize their value and minimize the impact to your pocket book.

Many people get tripped up when asked to select benefits for themselves and their families because these decisions can be complicated, and it is often easier to elect the same coverage that you had during the previous plan year. However, last year’s coverage may not suit you again, and there may be new plans that better meet your needs. Here are a few tips to help you make the best benefit decisions for you and your family: […]

By |November 6th, 2012|Employee Benefits, Employee Communications, Medical, Voluntary Benefits, Wellness|Comments Off on Taking Time to Make Good Open Enrollment Decisions

Four Reasons Why Employers are Increasingly Implementing Voluntary Benefits Plans

Voluntary benefit plans are not a fad that will quietly go away.  They are here to stay.  And more employers are realizing they offer a win-win opportunity for both them and their employees.

Here are four reasons why a growing number of employers are instituting Voluntary Benefits plans for their employees:

1.       Voluntary benefits offer employers a solution for beefing up their benefit package without adding cost to the bottom line.

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By |April 10th, 2011|Voluntary Benefits, Worksite Marketing|Comments Off on Four Reasons Why Employers are Increasingly Implementing Voluntary Benefits Plans