Health Plan Sponsors Should Expect New Fee Disclosures from Brokers and Consultants

Health Plan Sponsors Should Expect New Fee Disclosures from Brokers and Consultants

Employers of all sizes need to be aware that their group health plans will soon be receiving new fee and compensation disclosures from the health plan service providers.  The Consolidated Appropriations Act, 2021 (“CAA”), signed into law by President Trump on December 27, 2020, imposes new fee disclosure requirements upon brokers and consultants to group health plans covered by the Employee Retirement Income Security Act of 1974 (“ERISA”).  This insight explains what disclosures you should be expecting to be receiving from your plan’s service providers.  These new disclosure rules apply to major medical/prescription drug plans, dental plans, vision plans, health flexible spending accounts, and health reimbursement arrangements. (more…)

IRS Issues Guidance on COBRA Subsidy

On May 18, 2021, the IRS issued Notice 2021-31, a guidance document on the American Rescue Plan Act (ARPA) subsidy for continuation health coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). The Notice discusses the background of the subsidy and includes 86 questions and answers (Q&As) about its application. Read more…

 

 

 

 

 

HSA/HDHP Limits Increase for 2022

On May 10, 2021, the IRS released Revenue Procedure 2021-25 to provide the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2022. The IRS is required to publish these limits by June 1 of each year. Read more…

 

 

 

 

 

COBRA Subsidy Model Notices & FAQs

On April 7, 2021, the U.S. Department of Labor (DOL) issued FAQs and model notices for the COBRA premium assistance provisions of the American Rescue Plan Act (ARPA). The ARPA provides a 100% subsidy for employer-sponsored group health insurance continued under COBRA and similar state continuation of coverage programs for eligible individuals. The subsidy applies from April 1 through Sept. 30, 2021. The notices and the FAQs appear on a new DOL webpage dedicated to the ARPA COBRA subsidy. Read more…