Background In June, the Supreme Court’s Windsor decision invalidated Section 3 of DOMA (which formerly limited federal recognition of marriage to opposite-sex spouses). But the Windsor ruling still left the determination of marital status to the states, so many issues were unresolved – most notably what happens when a couple marries in a state permitting same-sex marriage but resides […]
Patient-Centered Outcomes Research Institute (PCORI) Fees Apply To Employers Who Sponsor HRAs (And Some FSAs) Background: Health Care Reform created a new nonprofit corporation, the Patient-Centered Outcomes Research Institute (PCORI), to support clinical effectiveness research. The Institute will be funded in part by PCORI fees paid by certain health insurance issuers and sponsors of applicable […]
An “excepted benefit” is a label and classification that was created to define certain health plans that are excepted from the HIPAA portability rules. Regulators have confirmed that health benefits that qualify as “excepted benefits” do not have to comply with the new reform mandates under Health Care Reform. Typically, most health FSAs are excepted benefits. […]
We receive several inquiries from our clients asking if their FSA Plan Documents need amended due to The Health Care and Education Reconciliation Act’s (HCERA) extension of tax-free health coverage for adult children. The answer depends on how “Dependent” is defined in your plan document. Expenses for adult children up to age 27 can now […]
Employers offering a High Deductible Health Plan (HDHP) along with a Health Savings Account (HSA) need to be aware of the strict rules related to HSA eligibility and how their other health benefit plans might fit with these rules. Many employers already have a Flexible Spending Account (FSA) or Health Reimbursement Account (HRA) benefit in […]
Nothing in Code §125 or the IRS cafeteria plan regulations addresses how an FSA account should be treated in the event of a corporate merger or acquisition. However, the IRS has provided some guidance in the form of a revenue ruling and informal comments. Therefore, some generalizations can be made based on how the transaction is […]
Is A Health Reimbursement Account Subject to COBRA? You bet! Assuming the employer has more than 20 employees and is subject to COBRA, terminated employees must be offered the opportunity to continue coverage under the employer’s group health plan(s) whether the coverage is a fully insured or self-insured plan. Flexible Spending Accounts (FSAs) and Health […]
