Benefits Blast

New transparency requirements under the Affordable Care Act and the Consolidated Appropriations Act have ushered in a new era of fee and pricing transparency with respect to the Employee Retirement Income Security Act (ERISA) group health plans.

In January, the 2024 federal poverty level (FPL) was announced as $15,060. 

Effective January 15, 2024, the United States Department of Labor increased its ERISA health and welfare civil penalties for non-compliance

On October 31, 2023, the United States Department of Labor’s Employee Benefits Security Administration (the Department) released its most recent proposed amendment to the guidance addressing when a person would be considered a fiduciary under Title I and Title II of the Employee Retirement Income Security Act of 1974 (ERISA) if it provides investment advice or makes an investment recommendation to a retirement investor.

In 2019, the state of Washington created the WA Cares Fund to provide affordable long-term care coverage for employees in Washington state. Following legislation that delayed the effective date by one year and added voluntary exemptions for certain individuals, Washington state employers must now begin deducting premiums from employee wages beginning July 1, 2023.

As March 2023 comes to a close, a lot has happened with respect to health and welfare employee benefit plans. Below is a quick summary highlighting some of the changes.

On February 13, 2023, a Florida federal district court (the Court) partially invalidated the U.S. Department of Labor’s Employee Benefit Security Administration’s (the Department’s) interpretation of its rule that described when a financial adviser who helps participants roll over some or all of their 401(k) assets into an individual retirement account (IRA) or an annuity is providing investment advice and acting as a fiduciary under the Employee Retirement Income Security Act of 1974, amended (ERISA).

The Consolidated Appropriations Act-21 (CAA) included a provision that requires group health plans (plans) and health insurance companies (issuers) to report prescription drug benefits, drug costs, and healthcare spending.

On December 15, 2022, the Internal Revenue Service (IRS) issued final regulations that permanently extend by 30 days the deadline for furnishing Form 1095-C and Form 1095-B to individuals. The forms will now be due on March 2 (March 3 in a leap year), or the next business day if the due date falls on a weekend or holiday. The proposed regulations were issued in November 2021.

Last week, the IRS released Notice 2022-55 to announce cost-of-living adjustments to the indexed dollar limits applicable to retirement plans. For the second year in a row, the contribution and benefit limits will increase significantly. The chart below shows how the new limits compare to those of the previous two years.