Health & Welfare Plans Newsletter

January 15, 2018

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Autism Treatment Benefits and Coverage Limitations (PDF)
"In recent years, there has been increased demand for coverage of autism treatment benefits in employer group health plans -- and a corresponding uptick in litigation by participants seeking coverage for these benefits.... Applied Behavioral Analysis (ABA) and Applied Behavioral Therapy (ABT) are the most commonly prescribed evidence-based treatments for ASD. These approaches commonly include diagnostic evaluations/assessments, treatment planning, medication management, and individual, family and group therapy."
Conduent

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And the HIT Just Keeps on Coming
"The [Health Insurance Tax, an ACA-imposed tax on fully insured health plans,] is non-deductible, meaning for every $1.00 in taxes the insurer will need to take in $1.54 (assumes 35% corporate tax rate). For 2018, the amount this tax must generate is $14.3 billion -- meaning insurers must generate $22 billion of additional premiums to pay for it.... To offer transparency, many insurers are breaking out these taxes on renewals for consumers to see. But, for most employer plans -- where a large amount of this revenue is generated -- this tax isn't transparent to employees."
InsureBlog

Employers Say Acquisition Announcements Likely to Impact Future Health Care Strategies
"450 HR leaders from large and mid-size employers [were asked] about potential implications the recently announced CVS/Aetna and other potential deals ... could have on their health care strategies.... 71 percent expect moderate changes in how/where people will access health care ... [S]ix out of 10 say they are likely to make changes to their health care strategies[.]"
Wolters Kluwer Law & Business

Help Employees Stay Resolute About Their Health Goals
"[1] Make physical activity convenient with virtual fitness programs ... [2] Stretch your idea of wellness ... [3] [Use] a bingo-style program to ... increase participation in activities around well-being, stress, fitness, volunteerism and more.... [4] Take a trip ... [5] Invent a new acronym ... [6] Host an open house."
HealthFitness

Sleep Study Fraudsters to Face Long, Dark Nights in Prison
"Federal prosecutors recently indicted the owner of a California medical clinic and a delivery service driver for allegedly bilking employer-sponsored healthcare plans for millions of dollars in claims for sleep study expenses.... [A plan sponsor] should be asking questions about how its administrator processes claim requests and whether the administrator requires supporting documentation to substantiate the claim. Sponsors may also want to periodically consider a claims audit to identify suspiciously claims or educate their participant population regarding red flags to watch for related to fraudulent schemes."
Lockton

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[Opinion]

Maryland Grants Access to Paid Sick Days to 700,000 Employees and Their Families
"[T]he Maryland legislature successfully overrode Governor Hogan's veto of a bill granting Maryland workers access to paid sick days ... Maryland is ... the ninth state to guarantee a minimum amount of paid time for eligible workers to care for themselves or their family when they are sick or need medical care."
Economic Policy Institute

Executive Compensationand Nonqualified Plans

[Guidance Overview]

Tax-Exempt Organizations Face New Executive Compensation Rules Under Tax Reform
"The excise tax applies not only to pay exceeding $1 million in a given year, but also to any 'excess parachute payment'.... [which] is any payment contingent on the employees separation from employment to the extent the separation payments exceed three times the employees average pay over the preceding five years. Excess parachute payments do not have to reach $1 million before becoming subject to the excise tax[.]
Kaufman & Canoles, P.C.

[Guidance Overview]

Executive Compensation Changes Under Tax Reform: An Update for Plan Sponsors (PDF)
"While the transition rule may seem straightforward, employers should exercise caution before modifying existing contracts if they wish to preserve the grandfathered status of those arrangements.... [If] qualified stock is transferred to a qualified employee and the employee timely makes a Section 83(i) election, the employee recognizes income with respect to that stock in the tax year that includes the five-year anniversary of the date the employee's rights in the stock vest, subject to earlier inclusion if certain events occur."
Drinker Biddle

Selected Discussionson the BenefitsLink Message Boards

Code Section 105(h) Issue? COBRA Subsidy Varies by Position
We provide a COBRA subsidy to our employees. In our self-insured plan, the benefit varies based on position. For example, 6 months for staff and 12 months for Senior employees. Is this a 105(h) issue? If so, what does this mean? The first 6 months would be non-taxable for everyone, but the second 6 months for Senior employees would be taxable as an "excess reimbursement"?
BenefitsLink Message Boards

Need Recommendations for Hiring of Independent Fiduciary for a Self-Funded Health Plan
I am currently advising a client with respect to some potential prohibited transactions inside a self-funded group health plan. Part of that conversation has turned to a discussion about hiring an independent fiduciary. What are some names of companies that offer independent fiduciary services to self-funded health plans?
BenefitsLink Message Boards

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BenefitsLink Health & Welfare Plans Newsletter, ISSN no. 1536-9595. Copyright 2018 BenefitsLink.com, Inc. All materials contained in this newsletter are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of BenefitsLink.com, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.

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