Health & Welfare Plans Newsletter

July 20, 2015

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Employee Benefits Jobs

Retirement Plan Conversion Consultant
Charles Schwab
in OH, TX

Client Relationship Manager
PCS
in PA

Lead Implementation Analyst
Empower Retirement
in MA

Client Relationship Manager
The Newport Group
in CA, FL, TX, VA

Compliance Manager
Verisight
in AZ, IL

Senior Implementation Consultant
VALIC
in TX

Retirement Plan Administrator
Third Party Administrator
in WI

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Webcasts and Conferences

Information Reporting Requirements for Providers of Minimal Essential Coverage
July 30, 2015 WEBCAST
(IRS [Internal Revenue Service])

IRS? Liberalization of the IRS Correction Program for Qualified Plans
August 13, 2015 WEBCAST
(Bloomberg BNA)

Back to the Future: What the Tea Leaves Say About the Future of TPA Technology
August 18, 2015 in KY
(ASPPA Benefits Council [ABC] of Greater Cincinnati)

What the Healthcare Law Means for your Small Business
August 20, 2015 WEBCAST
(Small Business Majority)

View All Webcasts and Conferences


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[Guidance Overview]

IRS Form 1095-C ACA Reporting and Disclosure Requirements
"Although not every employee who receives a W-2 will also receive a Form 1095-C, every employee who must receive a Form 1095-C must also receive a W-2. Consequently, the 1095-C and W-2 functions may be coordinated.... If an ALE wants to keep Form 1095-C processing in house, the ALE should determine what data must be collected, identify where the required data is stored in its financial and information systems and develop systems to collect and aggregate the data, prepare and send the 1095-C forms to employees, and transmit the 1094-C and 1095-C forms to the IRS." (von Briesen & Roper, s.c.)


[Advert.]

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Sponsored by Gravie

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Court Ruling Illustrates Importance of Clear and Concise Benefits Communication
"A recent court ruling granting class certification to individuals suing Blue Shield of California over its refusal to cover a procedure it considers experimental and investigational (E&I) speaks to the importance of both payers and employers making it very clear what it will and will not cover -- and where members and providers can check to see if a recommended procedure or supply falls into the 'E&I' category.... Payers and employers alike should carefully review their summary plan descriptions, contracts and websites to make sure E&I is described clearly and accurately, and that consumers and providers alike know exactly where to locate information." [ Escalante v. California Physicians' Service dba Blue Shield of CA , No. 14-cv-03021 (C.D. Cal. July 14, 2015)] (HighRoads)

When Using a Health Savings Account, Know What Is Eligible
"While the tax advantages may be attractive, some rules about what products are eligible for purchase with HSA funds can be confusing. Under a change enacted with the Affordable Care Act, most over-the-counter drugs, like common allergy medications or pain relievers, are HSA-eligible only if you get a prescription for them from your doctor. On the other hand, items like sunscreen and contact lens solution are eligible for purchase -- without a prescription -- with your HSA funds." (The New York Times; subscription may be required)

Health Care and Medical Cost Trends 2016
"Spending growth in the $2.9 trillion US health economy is expected to slow in 2016 as compared to 2015, but it will still outpace overall economic inflation. Stock prices, earnings reports and the customer base have increased and that means the industry is financially healthy. Affordable healthcare, however, remains out-of-reach for many consumers." (PricewaterhouseCoopers)

The Latest Pharmacy Data and Insights for Public Exchange Plans (PDF)
35 pages. "[E]xchange members continue to use their prescription drug benefits. Their significant use of specialty medications continues to drive up plan and individual costs. However, new enrollees are demonstrating signs of broader market engagement as they are younger with a relatively lower prevalence of specialty conditions, such as HIV. If trends continue in this direction, these younger, healthier members will prove beneficial for managing overall health plan risk." (Express Scripts)


[Advert.]

Join us at IHC Private Exchange FORUM Baltimore Sept. 1-2, 2015!

Sponsored by Institute for Healthcare Consumerism [IHC]

As a benefit to our partnership with IHC, BenefitsLink would like to extend to you a complimentary registration FREE of charge to Private Exchange FORUM. Use Promo Code: BENEFITSLINKVIP Hurry, Offer expires July 31, 2015



Treasury Department Update on the ACA and Tax Filing Season
"[The Treasury Department] currently anticipate[s] that about 4 percent of households are required to file tax returns to reconcile tax credits they benefitted from through the year or will claim credits on their tax return ... Of these taxpayers expected to reconcile, about two thirds have already filed returns and reconciled credits, accounting for approximately $10 billion of the $15.5 billion provided through the Marketplaces in 2014. Many additional taxpayers are expected to reconcile in the coming months." (U.S. Department of the Treasury)

Senators Sound Off on Healthcare.gov Fraud Protections
" 'CMS's explanation has been that they have to balance the ease of access to coverage with program integrity controls; based on our work, there are gaps in these controls that have yet to be addressed,' said [Seto Bagdoyan, director of audit services at the GAO's Forensic and Investigative Service]. 'As of now, the balance would be access over program integrity.' " (MedPage Today)

[Opinion]

A Not-So-Transparent Attempt to Cap Drug Prices
"By stoking outrage at drug markups, activists hope to lay the groundwork for government-imposed price controls.... There is no surer way to bring pharmaceutical innovation to a halt in the U.S. than letting governments decide how much companies can charge for their products or harassing them into lower prices. It also represents a fundamental misunderstanding of how pharmaceutical research works." (The Wall Street Journal; subscription may be required)

Benefits in General; Executive Compensation

[Guidance Overview]

DOL Limits Independent Contractor Classification
"The ... main goal [of Administrator's Interpretation 2015-01 ] is to provide DOL's view on how courts should interpret the 'economic realities' test utilized to determine whether a worker is an employee for purposes of the FLSA. The test seeks to determine the degree of economic dependence of the worker on the putative employer. If the worker is economically dependent on the putative employer, the worker under the test should be found to be an employee. The test includes six factors aimed at helping courts make this determination." (Proskauer's Law and the Workplace)

[Guidance Overview]

DOL Draws Line on Worker Classification
"If individuals are reclassified as employees, then an employer may suddenly find it subject to requirements which it previously thought it was exempt from (e.g., moving from under 50 full-time employees or full-time equivalent employees to being subject to the employer shared responsibility penalty, or moving out of other small employer exemptions such as under the Mental Health Parity and Addiction Equity Act, or moving the employer out of a safe harbor for offering coverage to 70% of full-time employees in 2015 or 95% in 2016 and triggering the employer shared responsibility tax for failing to offer coverage).... Failing to enroll the individuals prior to reclassification in a 401(k) plan could result in having a group of new employees that should have been enrolled in a 401(k) Plan that was a safe harbor plan, not enrolled, and not receiving safe harbor contributions and the plan losing its safe harbor status and being required to test for nondiscrimination in contributions." (Winstead PC)

Evidence Supporting a Claim Can Be Insufficient, Even If Undisputed
"The court began by noting that, while plan administrators cannot arbitrarily refuse to credit a claimant's reliable evidence, they may exercise discretion in deciding what evidence is sufficient. Where the administrator has substantial evidence to support its determination, the fact that there is conflicting evidence does not equate to an abuse of discretion.... It might be arbitrary and capricious to reject a claimant's evidence without making a reasonable effort to develop the record further. But this is governed by a rule of reason, and administrators are not required to 'scour the countryside' to find evidence to support a claim." [ Roganti v. Metro. Life Ins. Co. , No. 13-4532-cv (2d Cir. May 14, 2015)] (Begos Brown & Green LLP)

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