IRS bumps up FSA, adoption limits, leaves others alone

By Jared Bilski

The IRS released the limits on flexible spending accounts (FSAs), adoption assistance and transit benefits for 2015. Here are the limits that will increase as well as those that will remain the same.
The most important change HR pros will want to note and let employees know about involves FSAs.

FSAs

In Rev. Procedure 2014-61, the feds increased the inflation adjusted contribution limit for health FSAs to $2,550 for the 2015 tax year. That’s a $50 increase from the current $2,500 contribution limit, and the first time the feds have increased the FSA limit since the Affordable Care Act capped contribution amounts.

Click here for entire article.

Tip Tuesday! Transitional Reinsurance Fee Filing Date Extended to December 5

By Linda Rowings

The Centers for Medicare and Medicaid Services (CMS) extended the deadline for group health plans to provide their 2014 transitional reinsurance fee (TRF) submission. Filing is now due by 11:59 p.m. on December 5, 2014. The January 15, 2015, and November 15, 2015, deadlines to pay the fee remain the same. For more information on the TRF, see our recent blog. For the answers to nearly 30 questions about filing, due dates, calculation methods, payment, submission and more, CLICK HERE to Request UBA's "Frequently Asked Questions about the Transitional Reinsurance Fee (TRF)".

Click here for entire article.

Obamacare delay provides relief — and an opportunity

By Jared Bilski

The most recent health-reform implementation roadblock involves a tool the feds created to help employers with administration issues. But problems with that very tool directly led to a delay that benefits employers.

In IRS Notice 2014-69, the agency clarified that certain health plans — commonly referred to as “skinny” health plans — that offer limited or no coverage for in-patient hospitalization services and/or physician services will not provide “minimum value” under the health reform law.
But there’s one major caveat in this announcement.

Click here for entire article.

Ouch! Asking candidates for family medical info costs biz $187K

By Christian Schappel

This company committed perhaps the cardinal sin under the commonly misunderstood Genetic Information and Nondiscrimination Act (GINA). 
All Star Seed, Inc., La Valle Sabbia and Abatti, three Southern California seed and fertilizer providers operating as a single employer subjected job applicants to inquiries about genetic info (a.k.a., family medical history) and medical conditions as a condition of employment, according to charges filed by the feds.
The Equal Employment Opportunity Commission (EEOC) filed the charges, claiming the company’s practices violated GINA, which prohibits employers from making employment decisions based on genetic info.

Click here for entire article.

5-minute stress busters — for every season

By United Healthcare-Healthy Mind Healthy Body Feeling frazzled? Try these quick ways to tap some calming energy

It's certainly a hectic and harried time of year. But if you're like many people, that describes your average day too. You've got places to be, people to see and a to-do list a mile long. Really, who has time to relax? You're on the go, go, go. But while you're at it, stress can be zapping your energy. And over time that strain can take a greater toll. It can contribute to burnout and a host of health problems, including anxiety, depression and high blood pressure. So when you feel the tension building, take a few minutes and slow it down. You'll feel better right away — and you'll be caring for your long-term peace of mind and health too.    Five quick fixes You can take yourself from keyed-up to calmer with any of these steps: 1. Take a deep breath — or 10. Sit quietly, breathe deeply and exhale slowly — and try to let go of your worries. 2. Step out. If you can get away, take a short, brisk walk to clear your head. 3. Go to your happy place. Close your eyes — and imagine a favorite serene setting. 4. Tune out the tension. Take a few minutes to listen to some calming music. Or maybe rocking out is more your style. An up-tempo song — and some air guitar or pencil drumming — may do the trick for you. 5. Focus on the upside. When you're feeling overwhelmed, take a few minutes to think about all the blessings in your life, including your own good qualities. Are you stressed over a particular difficult situation? Try to picture at least one positive solution — and what steps you would take to make that happen.      Click here for article.

Tip Tuesday! Reference-Based Pricing and Cost-Sharing Limits

By Linda Rowings

The Department of Labor (DOL), the IRS, and the Department of Health and Human Services (HHS) have jointly issued a FAQ that addresses how "reference-based pricing" works with the Patient Protection and Affordable Care Act's (PPACA) restrictions on out-of-pocket maximums. PPACA limits the out-of-pocket maximum a non-grandfathered plan may impose, and generally requires that co-pays, coinsurance, and deductibles be counted toward this limit. However, premiums, balance billed amounts for non-network providers, and non-covered services do not need to be applied to the out-of-pocket limit. (For 2015, the limits are $6,600 per individual or $13,200 per family.) The new FAQ explains how the out-of-pocket limit applies to plans that use reference-based pricing--i.e., a design under which the plan pays a fixed amount for a particular procedure (such as a knee replacement), which certain providers have agreed to accept as full payment.

Click here for entire article.

Can Employers Pay for Employees in Exchanges? No.

By Keith R. Mcmurdy

On November 6, the DOL issued FAQ Part 22, which directly addresses some recent efforts by employers to reimburse employees for participation in the exchange through Code Section 105, or through some type of other arrangement.  Here are the questions, with shortened answers.  For a complete copy of the notice, click this link.

Q1: My employer offers employees cash to reimburse the purchase of an individual market policy.  Does this arrangement comply with the market reforms?

No.  If the employer uses an arrangement that provides cash reimbursement for the purchase of an individual market policy, the employer’s payment arrangement is part of a plan, fund, or other arrangement established or maintained for the purpose of providing medical care to employees, without regard to whether the employer treats the money as pre-tax or post-tax to the employee.  Under the Departments’ prior published guidance, the cash arrangement fails to comply with the market reforms because the cash payment cannot be integrated with an individual market policy.

Click here for entire article.

When HR’s worst Facebook nightmare becomes a reality

By Christian Schappel

Social media can certainly help employers in a lot of ways. But here’s an alarming example of the sad fact that even if you do everything right on social media, it can still burn you down. 
Leslie’s Family Tree, a family-owned cafe in Santaquin, UT, thought what most businesses do these days: “Let’s start a Facebook page to drum up more business.”
It’s got to be regretting that thought now.

Click here for entire article.

CDHPs: How firms can help workers avoid this bad health habit

By Jared Bilski

The popularity of consumer-driven health plans (CDHPs) may be skyrocketing, but an alarming number of businesses are failing to use these plans as directed. Luckily, there are some proven fixes to this problem.

First, some stats to show just how popular these plans have become.
Starting in 2015, more than three-fourths (81%) of all employers will offer at least one CDHP, which is a significant increase from the 63% of firms that did so just five years ago, according to new research by the National Business Group on Health.

Click here for entire article.

Tip Tuesday! Requirement to Obtain a Health Plan Identifier (HPID) Delayed

By Linda Rowings

On Friday, October 31, 2014, the Department of Health and Human Services (HHS) quietly updated its Health Plan Identifier information page to delay the requirement that insurance carriers and self-funded health plans obtain a health plan identifier (HPID). The delay is in effect until further notice.

Click here for entire article.

The Story Behind Minimal Changes in Plan Designs and Premium Rates

By Carol Taylor

The United Benefit Advisors (UBA) annual Health Plan Survey for 2014, which contains validated data on 16,467 plans for 9,950 employers, shows minor average change for plans in the last year. The survey contains information on plans that renewed predominantly between June 2013 and June 2014.
While the average in-network deductible rose a mere $49 to $1,901, the larger plan changes are only seen in the median results:

• In-network out-of-pocket maximums jumped $500 for single coverage and $1,000 for family coverage.
• The out-of-network out-of-pocket maximums rose by $1,000 for both single and family coverage.

Click here for entire article.

The problem with high-deductible health plans

By Jared Bilski

With the bulk of employers turning to high-deductible health plans (HDHPs) and banking on employees becoming better overall consumers, the findings in this report can be very disheartening for HR pros.

According to a recent study by the American Institutes for Research (AIR), 42% of individuals are “not likely” or just “somewhat likely” to review a healthcare plan’s details before signing up for coverage. What’s worse, only 20% of health plan participants could correctly calculate how much they owe for a routine doctor’s visit, the AIR study found.

Click here to continue reading.

EEOC’s third wellness lawsuit focuses on ADA and GINA: What HR should know

By Jared Bilski

Bad things, such as celebrity deaths and high-profile federal lawsuits, tend to come in threes. Recently, the Equal Employment Opportunity Commission (EEOC) completed its trifecta by filing its third wellness-related lawsuit of 2014.

Honeywell International, Inc., is the latest organization to find itself on the wrong end of an EEOC lawsuit.

Click here to continue reading.

Tip Tuesday! IRS Announces Other Benefit Limitations for 2015

By Larry Grudzien Attorney-At-Law

The Internal Revenue Service announced  in Revenue Procedure 2014-61  the annual inflation adjustments for more than 40 tax provisions for 2015, including the tax rate schedules, and other tax changes. This Revenue Procedure provides details about these annual adjustments. 

  

There are several benefit limitations for 2015 included: 

* The annual dollar limit on employee contributions to employer-sponsored healthcare flexible spending arrangements (FSA) is increased to $2,550.

  

*The amount for the adoption credit or the amount excluded for adoption assistance allowed for an adoption of a child with special needs is $13,400.

  

*The dollar amount for employee health Insurance expense of small employers is $25,480.

  

*The monthly limitation for qualified transportation fringe benefit regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass is $130. The monthly limitation regarding the fringe benefit exclusion amount for qualified parking is $250.

  

*The limitations regarding eligible long-term care premiums includible in the term "medical care," are as follows:

  

Attained Age Before the Close of the Taxable Year            Limitation on Premiums

  

40 or less                                                                                              $380

More than 40 but not more than 50                                                      $710

More than 50 but not more than 60                                                   $1,430

More than 60 but not more than 70                                                   $3,800

More than 70                                                                                     $4,750

.

*For Medical Savings Accounts, the term "high deductible health plan"  means, for self-only coverage, a health plan that has an annual deductible that is not less than $2,200 and not more than $3,300, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $4,450.

  

*For Medical Savings Accounts, the term "high deductible health plan" means, for family coverage, a health plan that has an annual deductible that is not less than $4,450 and not more than $6,650, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $8,150. 

For a copy of Revenue Ruling 2014-61, click here.

Read more from Larry here.