In our January 2022 update, we discussed new federal requirements that group health plans should pay close attention to in 2022. The sponsor of a self-funded plan will need to work closely with its legal counsel, benefits consultant, and administrative services only (ASO) provider or other third-party administrator (collectively, TPA) to modify its plan
Washington Legislature Amends WA Cares Fund, Delays Premium Collection until July 2023
On January 27, 2002, Washington Governor Jay Inslee signed House Bills 1732 and 1733 into law, officially delaying the assessment of WA Cares Fund premiums until July 1, 2023. As a result, WA Cares Fund benefits will not be available until July 1, 2026. These delays give state lawmakers additional time to resolve key issues
2022 Cybersecurity Issues and Recommendations for ERISA Plan Fiduciaries
New cybersecurity developments and observations, including those relating to U.S. Department of Labor review of cybersecurity issues, warrant prompt consideration by plan fiduciaries, including those plans covered by HIPAA. The following update includes recommendations to help ERISA retirement and health and welfare plan sponsors and responsible fiduciaries protect benefit plans and participants against cybersecurity risks
Ringing in the New Year: Key Developments for Health Plan Sponsors
There are many new and expanding legal requirements for group health plans and issuers of group health plan coverage to pay attention to this year. Many of these requirements were enacted as part of the Consolidated Appropriations Act of 2021, which passed in December 2020. This update describes the key legal requirements that we are
Washington Governor Attempts to Clarify WA Cares Fund Premium Collection
Today, Washington Governor Jay Inslee released a statement clarifying his earlier statement about delaying the assessment of WA Cares Fund premiums. (Our earlier blog entry is here.) In today’s clarification, the Governor appears to be saying that employers still have a choice to make about whether to collect and remit WA Cares Fund premiums,
Washington State Pauses Collection of WA Cares Fund Premium Assessments, Employers Should Too
See our December 23, 2021 update to this alert here: Washington Governor Attempts to Clarify WA Cares Fund Premium Collection | Employee Benefits (perkinscoiebenefitsblog.com)
On December 17, Washington Governor Jay Inslee, Senate Majority Leader Andy Billig, and House Speaker Laurie Jinkins issued a joint statement that included the Governor’s intention to direct the State’s Employment
2022 IRS Annual Employee Benefit Plan Limit Updates
The IRS has issued Notice 2021-61 and Revenue Procedure 2021-45 setting forth its annual employee benefit plan limitations for 2022. Key changes, placed in bold in the chart below, include the following:
- Code Section 402(g) limitation on elective deferrals increased from $19,500 to $20,500.
- Code Section 408(p) limitation on elective deferrals for SIMPLE retirement account plans increased from $13,500 to $14,000.
- Code Section 415(c) maximum annual additions increased from $58,000 to $61,000.
- Compensation limit under Code Section 401(a)(17) increased from $290,00 to $305,000.
- HDHP Out of Pocket Maximum increased from $7,000 to $7,050 for self-only coverage and from $14,000 to $14,100 for family coverage.
- HSA Maximum Contribution Limit increased from $6,000 to $3,650 for self-only coverage and from $7,200 to $7,300 for family coverage.
- All adoption assistance limits and thresholds have increased.
- All QSEHRA and Archer MSA limits increased.
- Parking and transit fringe benefit contribution limits increased from $270 to $280 per month.
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Supreme Court Rejects Challenges to the Affordable Care Act in Texas v. California
On June 17, 2021, the Supreme Court rejected another attempt to dismantle the Patient Protection and Affordable Care Act (“ACA”) in its highly-anticipated decision in Texas v. California. However, instead of ruling on the central issue in the case—whether the ACA was rendered unconstitutional when Congress eliminated the individual tax penalty for failing to
Department of Labor Interprets Regulations Concerning Production of Audio Recordings and Transcripts of Phone Calls in Adverse Benefit Determinations
On June 14, 2021, the Department Labor (“DOL”) issued Information Letter 06-14-2021 to address whether ERISA requires plan fiduciaries to produce audio recordings and transcripts of telephone conversations between plan insurers and claimants.
The issue arose from a plan insurer’s denial of a claimant’s request for an audio recording. When it denied the request, the
Federal Agencies Release Interim Final Surprise Billing Regulations
On July 1, 2021, the U.S. Department of Health and Human Services (“HHS”), Department of Labor, Internal Revenue Service, and Office of Personnel Management issued their first installment of interim final surprise billing regulations. As explained in a prior post, the regulations implement new requirements for group health plans, health insurance issuers, and healthcare providers and facilities that were imposed by the bipartisan No Surprises Act, which was enacted as part of a 2020 appropriations act. The rules, “Requirements Related to Surprise Billing; Part I,” prohibit surprise or balance billing for certain healthcare services.
One important aspect of the new surprise billing regulations for sponsors of group health plans and health insurance companies is its effect on billing for emergency services, out-of-network air ambulance services, and certain out-of-network services provided at an in-network facility. If a plan or policy provides or covers any emergency services, they must
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