IRS Announces Benefit Plan Limits for 2020

The Internal Revenue System (IRS) recently announced the 2020 dollar limits for employee benefits including: High Deductible Health Plans (HDHPS), Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), Transportation Benefits, and Adoption Assistance. As cost of living expenses continue to rise due to inflation, the IRS annually adjusts contribution limits …

HHS Rescinds Health Plan Identifier (HPID) under HIPAA

The Department of Health and Human Services (HHS) has released a final rule to rescind the HPID and requirements for its use. What is a HPID? A HPID is a standard, yet unique health plan identifier that is primarily used in Health Insurance Portability and Accountability Act (HIPAA) standard transactions. …

Medicare Part D Notices Are Due Before Oct. 15, 2019

Each year, Medicare Part D requires group health plan sponsors to disclose to individuals who are eligible for Medicare Part D and to the Centers for Medicare and Medicaid Services (CMS) whether the health plan’s prescription drug coverage is creditable. Plan sponsors must provide the annual disclosure notice to Medicare-eligible …

House Votes to Repeal Cadillac Tax

On July 17, 2019, the House passed a bill that would repeal the currently inactive Cadillac tax. The tax is an unpopular provision of the ACA, which is scheduled to take effect in 2022. The Middle Class Health Benefits Tax Repeal Act of 2019 would repeal the Cadillac tax before …

ACA Affordability Percentages Will Decrease for 2020

On July 23, 2019, the IRS issued Revenue Procedure 2019-29 to index the contribution percentages in 2020 for determining affordability of an employer’s plan under the Affordable Care Act (ACA). For plan years beginning in 2020, employer-sponsored coverage will be considered affordable if the employee’s required contribution for self-only coverage …

Form 5500 Is Due by July 31 for Calendar Year Plans

Employers with employee benefit plans that operate on a calendar year basis must file their annual reports (Forms 5500) for 2018 with the Department of Labor (DOL) by July 31, 2019. An employer may extend this deadline by two and one-half months (until Oct. 15, 2019) by filing IRS Form …

Final Rule Expands Options for HRAs

On June 13, 2019, the Departments of Labor (DOL), Health and Human Services (HHS) and the Treasury (Departments) issued a final rule that expands the usability of health reimbursement arrangements (HRAs). Effective in 2020, the final rule establishes two new types of HRAs: Individual Coverage HRA: Allows employers to offer …

Reporting and Paying the PCORI Fees

The Affordable Care Act (ACA) imposes a fee on health insurance issuers and plan sponsors of self-insured health plans to help fund the PatientCentered Outcomes Research Institute. The fee, called the PatientCentered Outcomes Research Institute (PCORI) fee, is calculated based on the average number of lives covered under the policy …