Benefits Blast

On January 30, 2023, the White House announced its intent to extend both the COVID‑19 National Emergency and the COVID‑19 Public Health Emergency declarations to May 11, 2023, and to end both emergency declarations on that date. The Public Health Emergency was initially declared by the Department of Health and Human Services as of January 27, 2020. The Secretary of Health and Human Services has authority to renew the Public Health Emergency in increments of 90 days.

The global economy is beset by challenges that will continue to affect companies throughout 2023. Growth has slowed, high inflation is widespread, and increasing interest rates are likely to worsen financial vulnerabilities. Companies reckoning with this difficult business environment are seeking to reduce costs, including through layoffs, such as those implemented throughout the financial and technology industries.

On May 18, 2021, the Internal Revenue Service (IRS) released highly anticipated guidance on the COBRA subsidies available under the American Rescue Plan Act (ARP).

The Internal Revenue Service (IRS) recently issued Notice 2021-15 (the Notice), which clarifies the provisions of the Consolidated Appropriations Act, 2021 (CAA) applicable to health and dependent care flexible spending accounts (FSAs), and provides additional relief for cafeteria plans.

On January 7, 2021, the Equal Employment Opportunity Commission (EEOC) released two new proposed rules on wellness programs (the Proposed Rules). 

The Consolidated Appropriations Act, 2021 (CAA) includes a provision allowing employers to make tax-free payments on their employees’ student loans of up to $5,250 per year through January 1, 2026. This is a five-year extension of a provision originally enacted in the CARES Act.

The Consolidated Appropriations Act, 2021 (the Act) provides additional funding for mental health and substance abuse services and also provides guidance and imposes additional reporting and compliance obligations on group health plans and health insurance issuers that provide mental health (MH) and/or substance use disorder (SUD) benefits.

In an unexpected but hard-fought win for consumers of medical care, surprise billing reform was signed into law as part of the $900 billion Consolidated Appropriations Act, 2021. The aptly-named “No Surprises Act” (the Act) is the result of a multi-year, bi-partisan effort to end surprise billing for medical plan participants and hold them harmless from balance billing by out-of-network providers, including federally regulated air ambulances.

The Consolidated Appropriations Act, 2021 (CAA) includes rules requiring brokers and consultants to disclose compensation that those service providers receive to steer health plan sponsors to certain insurance carriers, benefits administrators, and other vendors. These new comprehensive disclosure rules add a layer of transparency to what has otherwise been a gray area for many employer plan sponsors and are more comprehensive than limited disclosures in effect today on the Form 5500.   

Section 201 of the No Surprises Act, recently enacted as part of the Consolidated Appropriations Act, 2021 (CAA), prohibits group health plans, health plan insurers, and issuers of health insurance coverage (together, Covered Parties) from entering into contracts that restrict a plan from accessing and sharing certain information.

The Consolidated Appropriations Act, 2021 (CAA) includes relief for plan sponsors offering Health Care and/or Dependent Care Flexible Spending Accounts (FSAs). These voluntary rules will benefit participants who have FSA funds left over due to medical care provider and school/daycare closures and remote work arrangements in 2020 as a result of the pandemic.

The Consolidated Appropriations Act, 2021 (CAA), adds a new annual reporting requirement that requires every group health plan and every health insurance issuer that offers group or individual health insurance to submit an informational report on pharmacy benefits and drug costs with the Secretary of Health and Human Services (HHS), the Secretary of Labor, and the Secretary of the Treasury. Church plans are exempt from this reporting requirement.

The U.S. Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) recently issued proposed regulations under Section 213 of the Internal Revenue Code of 1986, as amended (the Code), clarifying the tax treatment of Direct Primary Care Arrangements (DPCA), and Health Care Sharing Ministry (HCSM) memberships under certain medical care arrangements.  

Late on March 25, 2020, the U.S. Senate approved a massive $2 trillion stimulus bill, the Coronavirus Aid, Relief, and Economic Security Act (H.R. 748) (CARES Act or Act), aimed at shoring up the U.S. economy in light of the disruption caused by the coronavirus pandemic.

On March 24, 2020, the U.S. Department of Labor’s Wage and Hour Division published its “first round” of guidance on the newly enacted Families First Coronavirus Response Act. The Act takes effect on April 1, 2020.

Shortly after midnight on March 14, 2020, the U.S. House of Representatives passed H.R. 6201, also known as the Families First Coronavirus Response Act, providing relief and passing emergency supplemental appropriations related to the novel coronavirus (COVID-19) pandemic.

In response to a recent Executive Order, the Departments of Treasury, Health and Human Services and Labor have issued proposed regulations requiring group health plans and health insurance issuers to provide greater transparency in pricing and coverage by disclosing cost-sharing information to participants (or their authorized representatives) through an internet-based tool (or paper), including an estimate of an individual’s cost-sharing liability for covered items or services furnished by a particular provider.

On November 6, 2019, the Internal Revenue Service (IRS) released Notice 2019-59, which states the 2020 dollar limitations on benefits and contributions under qualified retirement plans. The Internal Revenue Code (the “Code”) permits employers that sponsor qualified retirement plans and employees who participate in such plans tax benefits up to the stated dollar limits.

What is telemedicine and how is it being offered as an employee benefit by employers? In this episode of Winston & Strawn’s Benefits Blast Podcast, Employee Benefits & Executive Compensation Partners Susan Nash and Jamie Weyeneth discuss the growth of telemedicine services and how this service is affecting health care delivery to employees. They will also discuss the benefits of telemedicine services, the legal drawbacks of utilization, privacy concerns, and will provide key takeaways for employers who are considering offering telemedicine services.

A recently issued Opinion Letter from the Department of Labor (DOL), Letter FMLA2019-1-A, provides that an employer may not delay designating paid leave as Family and Medical Leave Act (FMLA) leave, and may not permit employees to expand FMLA leave beyond the 12-weeks (or 26 weeks for military caregiver leave) granted under the FMLA.