e3 Compliance Navigator™ Logine3 Financial News Archive For September / October 2010
IRS Delays W-2 Health Cost Reporting Requirement
Oct 14, 2010
The Internal Revenue Service announced Tuesday that it will waive for one year a health care reform law requirement that employers report the cost of coverage on employees' W-2 wage and income statements. Under the relief, health care cost information will have to be reported on the 2012 W-2s, which are issued in 2013.
The IRS also confirmed that the W-2 reporting requirement is only for informational purposes and the amounts that are reported will not be taxable.
http://www.irs.gov/pub/irs-drop/n-2010-69.pdf
Changes to Flexible Spending Accounts Effective 1/1/11
Oct 12, 2010
As you may be aware, Health Care Reform legislation included changes to how over-the-counter (OTC) medications will be handled under FSA, HSA and HRA accounts. As of January 1, 2011, OTC medications may no longer be reimbursed or purchased using FSA, HSA or HRA funds. Purchases may be made up through December 31, 2010 but as of January 1, 2011 they are no longer eligible. Details are outlined in the attached sample communication that may be used to communicate this change to your employees in advance of FSA open enrollment and so they are aware of the changes coming January 1st.
Please contact your e3 Financial service team if you have any further questions.
Andrew Torelli Mike Rankin
President Principal
Read more (pdf)...
New Procedures and Notices for Claims and Appeals and External Reviews under the Affordable Care Act
Sep 14, 2010
The U.S. Departments of Labor (DOL), Treasury and Health and Human Services (HHS) have released interim procedures and related Model Notices for claims, appeals and reviews under the Affordable Care Act. The Affordable Care Act sets standards for plans and issuers regarding both internal claims and appeals and external review. Plans and issuers in States without an applicable external review process are required to implement an effective external review process that meets certain minimum standards. An interim safe harbor provided by Technical Release 2010-01 applies to non-grandfathered, self-insured group health plans not subject to a state external review process. The standards include a number of notice requirements for internal appeals and external reviews.
Model notices that can be used to satisfy the disclosure requirements of the interim final regulations are being posted on the Department of Labor's website at http://www.dol.gov/ebsa and the Department of HHS/Office of Consumer Information and Insurance Oversight website at http://www.hhs.gov/ociio/. They include:
• Model Notice of Adverse Benefit Determination
• Model Notice of Final Internal Adverse Benefit Determination
• Model Notice of Final External Review Decision
For more on new claims, appeals, and review process requirements under the Affordable Care Act, please view a Fact Sheet by clicking here. You can also view the technical release from the U.S. Department of Labor and notice from the Departments of Labor, Treasury and Health and Human Services. For more on the Affordable Care Act, you can visit the HR & Benefits Essentials Health Care Reform Section, or visit the DOL's Employee Benefits Security Administration (EBSA) website by clicking here.
