Practical HR Tips, News & Advice. Updated Daily.
Self-funded companies can do a lot to improve employee health through wellness programs and creating “micro health delivery systems” (my term) with goals tailored to the firm’s employee population. The catch may be that only employers that are very large, very innovative and want to get very involved in health care may be able do […]
A plan participant’s disregard of health plan requests to verify dependent eligibility was a proper basis of a plan’s action to remove his dependents from coverage and garnish wages to recover about $23,000 in benefits overpayments, a federal court ruled in Muhammad v. Ford Motor Co., 2012 WL 95298 (E.D. Mich., Jan. 12, 2012). The […]
The good news: Important drugs are going generic — a savings opportunity for employer-sponsored health plans, which should do what’s reasonable and what’s allowed to switch employees over to generics. The bad news: Health plans may still have to ensure they are getting the maximum cost savings. A case in point: Several health plans are […]
With Jennifer McCormack, Esq. Lots of different kinds of coverage will not have to report their expenses next tax year (the 2012 tax year), and lots of employers won’t have to either. Are you one of them? Beginning calendar year 2012, employers must report on Forms W-2 (which employers will give employees in January 2013) […]
In its latest guidance on W-2 reporting of health benefits (Notice 2012-9, issued Jan. 5) the IRS has clarified that employers need not include the cost of coverage under an employee assistance program (EAP), health reimbursement accounts (HRA), wellness program or on site-medical clinic in the reportable amount if the employer does not charge a premium […]
Postcards are designed to provide a brief message, but it will be interesting to learn if such brevity is sufficient to adequately notify an individual of COBRA continuation coverage rights — particularly when the law identifies at least 14 content requirements for COBRA election notices. In a recent court case, an employer/plan administrator faced with […]
A mandatory uniform standard for health plans to pay claims electronically was adopted in rules issued Jan. 5 by the U.S. Department of Health and Human Services (HHS). The rules are designed to help health care providers match payments received with the “remittance advice” transactions that plans are already sending them under an existing HHS […]
A recent court case highlights two crucial issues in administering COBRA continuation coverage: (1) a plan administrator has the sole legal obligation to prove compliance with COBRA’s notice rules — it cannot pass the buck to third-party administrators; and (2) lack of sufficient evidence on COBRA notice procedures can be a costly mistake. Recently, an […]
An important component of health reform implementation is the imposition of an “essential benefits” package (of health goods and services that insurers of groups and individuals must cover). Under the Patient Protection and Affordable Care Act (PPACA), that benefit package will be de rigueur (1) for policies sold on exchanges and (2) insurers of small […]
Advance copies of the 2011 Form 5500 annual return/report and related instructions are now available for your viewing pleasure — the issuing federal agencies note the forms are for “informational purposes” only, so don’t use them to get a head start on your filing responsibilities. The advance copies were jointly issued by the U.S. Department […]