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Benefits

Reminder: PCORI Fees Due July 31

Fees Apply to Employers Sponsoring Certain Self-Insured Plans As a reminder, employers that sponsor certain self-insured health plans are responsible for Patient-Centered Outcomes Research Institute (PCORI) fees. Fees for plan years that ended in 2018 are due July 31, 2019. Employers must report and pay the required PCORI fees annually via IRS Form 720. For plan years that ended between January 1, 2018 and September 30, 2018, the fee is $2.39 multiplied by the average number of lives covered under the plan. For plan years that ended between October 1, 2018 and December 31, 2018, the fee is $2.45 multiplied by...

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Medicare Part D Creditable Coverage Notice Reminder

All group health plans that provide prescription drug coverage to Medicare Part D eligible individuals (whether actively working, retired, or disabled) are required to notify CMS whether or not the coverage provided is creditable. This disclosure is required whether the coverage is primary or secondary to Medicare. Employers must file their Disclosure Notice through the CMS website Instructions and guidance on completing the notice are also available. NOTE: If you are offering an actual Part D Plan, you are exempt from this filing requirement. Employers who have applied for a retiree drug subsidy are NOT required to complete this form. You will...

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IRS Releases 2020 HSA Adjustments

The IRS has released the 2020 inflation adjustments affecting Health Savings Accounts and High Deductible Health Plans. The 2020 IRS HSA limits are as follows: ITEM 2019 2020 Annual Contribution Limit – Individual $3,500 $3,550 Annual Contribution Limit – Family $7,000 $7,100 Annual Catch-Up Contribution Limit (Age 55 to 65) $1,000 $1,000 Minimum Deductible for HDHP – Individual $1,350 $1,400 Minimum Deductible for HDHP – Family $2,700 $2,800 Maximum Out-Of-Pocket for HDHP – Individual $6,750 $6,900 Maximum Out-Of-Pocket for HDHP - Family $13,500 $13,800 ...

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Frequently Asked Questions about the Form 5500 Series

Am I required to file a Form 5500 or 5500-SF for my employee benefit plan? Administrators of ERISA employee benefit plans are required to file an annual Form 5500 or 5500-SF, unless a reporting exemption applies. More specifically, if you are the administrator of a profit sharing plan, stock bonus plan, money purchase plan, 401(k) plan, defined benefit plan, 403(b) plan or welfare benefit plan, you must file a Form 5500 or 5500-SF for the plan each year. Certain welfare benefit plans are exempt from all or part of the Form 5500 series reporting requirements. For example, there is an exemption from...

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Form 5500 Annual Return/Report of Employee Benefit Plan   

Each year, employee benefit plan administrators are generally required to file a return/report regarding the plan’s financial condition, investments and operations. The annual reporting obligation is generally satisfied by filing the Form 5500 Annual Return/Report of Employee Benefit Plan or Form 5500-SF Short Form Annual Return/Report of Small Employee Benefit Plan, plus any required schedules and attachments. The Department of Labor (DOL), Internal Revenue Service (IRS) and the Pension Benefit Guaranty Corporation (PBGC) jointly developed the Form 5500 series to consolidate the main annual reporting requirements for employee benefit plans. The Form 5500 series is intended to protect the rights and...

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State Continuation of Coverage

Our team has updated the Virginia State Continuation Form. As a reminder, employers with under 20 employees are required to provide written notice within 14 days of learning of a covered person’s loss of eligibility under the plan. The covered individual must notify the employer within 60 days of their termination of eligibility if they intend to continue coverage. It is very important that the written notification is provided in a timely manner so the individual can choose to elect within that 60 day window. We have updated the form to clarify the 60 day election period. Continuation shall only be available to an...

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Recruit and Retain: The Power of Voluntary Benefits

As health care costs continue to rise, so has the value of voluntary benefits. Voluntary benefits allow employers to offer benefits that are attractive to employees without added cost to the company. Many employers consider expanding their voluntary benefits to compensate for employees’ increasing health care costs. Employees benefit because they have a variety of insurance and other program options conveniently available in one place. Types of Voluntary Benefits A few traditional voluntary offerings include dental, vision, disability, critical illness, life and accident insurance. Non-traditional voluntary benefits may include group legal plans, pet insurance, financial planning, employee discount programs, educational and adoption assistance,...

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Small Businesses May Be Able to Keep Existing Non-ACA Compliant Health Coverage Through 2020

Policies Renewed Under Extended Non-Enforcement Policy Must Comply by January 1, 2021 A previously extended non-enforcement policy which allows health insurance issuers, at their option, to continue group coverage that would otherwise be terminated or cancelled has been further extended to policy years beginning on or before October 1, 2020, provided that all policies come into compliance by January 1, 2021. Health insurance issuers that renew coverage under the extended non-enforcement policy are required to provide standard notices to affected small businesses for each policy year. Coverage subject to the non-enforcement policy will not be considered to be out of compliance with...

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The State of the Union Address and the Employee Benefits Market

On Tuesday, Feb. 5, 2019, President Donald Trump delivered the 2019 State of the Union Address (SOTU). The SOTU is an annual message delivered by the president to a joint session of Congress at the beginning of each year. At this year’s SOTU, President Trump discussed issues that have the potential to impact the employee benefits industry, including pre-existing conditions, lower prescription drug prices and nationwide paid family leave. Pre-existing Condition Protection In a departure from 2018 Department of Justice actions, President Trump announced in the address that people who have pre-existing conditions should receive protections. If the administration holds true to...

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