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In This Issue:
- Health Care
Reform Becomes Law
- Health Care
Reform State Action
- DOL Revises
COBRA Subsidy Resources
- DOL Adds
EFAST2 Guidance
- DOL Expects to
Release Fee Disclosure Regulations in May
- State
Updates: ID and VA
Health Care Reform Becomes Law
On Tuesday, March 23,
2010, President Obama signed HR 3590, legislation known as "Patient
Protection and Affordable Care Act", into law. The new law was closely
followed by passage of the reconciliation bill, HR 3590, the "Health
Care and Education Reconciliation Act of 2010" which was signed by
President Obama on Tuesday, March 30, 2010.
US Secretary of Labor
Hilda L. Solis and Assistant Secretary of Labor Phyllis C. Borzi both
released statements on the signing of the Patient Protection and Affordable
Care Act. The statements emphasized that over 32 million Americans are expected
to benefit from the provisions which allow those with pre-existing
conditions to obtain coverage. Secretary Solis also emphasized that the
administration will proceed towards job creation as its next step.
Informational resources,
including an outline of major provisions and their effective date, are
available from National Financial Partners. Please contact your advisor for
information. Other industry resources are available from both the National
Association of Health Underwriters (NAHU) and Kaiser Family Foundation.
Click here to view the Patient Protection and Affordable
Care Act.
Click here to view the statement by Hilda Solis.
Click
here to view the statement by Phyllis Borzi.
Click here to view the Health Care and Education
Reconciliation Act of 2010.
Click
here to view resources from NAHU.
Click
here to view resources from the Kaiser Family Foundation.
Health Care Reform State Action
Shortly after President
Obama signed HR 3590, attorneys general from 13 states filed a lawsuit
claiming the bill is unconstitutional, led by Attorney General Bill
McCollum of Florida. Specifically, the states assert that the mandate for
all citizens to obtain health care coverage or face penalties violates the
rights of the individual states to govern. The states participating in the
lawsuit include: Alabama, Colorado, Florida, Idaho, Louisiana, Michigan,
Nebraska, Pennsylvania, South Carolina, South Dakota, Texas, Utah and
Washington.
Click here to view the press release.
DOL Revises COBRA Subsidy Resources
The DOL has revised its
COBRA resources to reflect changes enacted by the Temporary Extension Act (TEA).
The General Notice has been revised to reflect the extension of the subsidy
to employees who are involuntarily terminated through March 31, 2010
(updated from Feb. 28, 2010). The DOL has also added several FAQs to its
website concerning employees who originally lost coverage due to a
reduction of hours and then experience an involuntary termination of
employment after March 1, 2010 and before April 1, 2010. Under TEA, these
individuals are now eligible for a special election period and eligible for
the subsidy. The Model Notice of a New Election Period should be used for
this purpose. The employee and any dependents would be eligible for the
subsidy on the first period of coverage following the termination of
employment. In other words, the subsidy is not applied retroactively to the
reduction of hours qualifying event. The DOL has also revised its COBRA
Premium Reduction Fact Sheet.
In regards to the subsidy
being extended beyond March 31, 2010, there are currently two bills in
Congress that would extend the subsidy. HR 4851 would extend the COBRA
subsidy eligibility period through April 30, 2010. The bill was passed by
the House, but has not been taken up by the Senate. HR 4213 would extend
the subsidy to employees involuntarily terminated through Dec. 31, 2010.
This bill was passed by the Senate, but the House has not yet voted on this
measure. Congress is currently adjourned for recess, but could pass
legislation retroactively upon their return.
Click
here to view the Model Notices.
Click here to view the FAQs.
Click here to view the fact sheet.
DOL Adds EFAST2 Guidance
Beginning with the 2009
Form 5500 reporting year, the Department of Labor (DOL) began requiring
retirement and health and welfare plans to file their annual Form 5500
reports electronically using EFAST2. The transformation from paper to
electronic filing resulted in number of changes in the filing procedures
and required the formation of three new frequently asked questions (FAQs)
to aid in the filing process. The EFAST2 system is new and evolving,
therefore, the FAQ list will be updated as needed with new or revised
information. The three new Q/As are as follows:
- Q/A 4a explains
that filers may not use the Form 5500-SF (short form) to file 2008 or
any prior year delinquent or amended returns. This option is only
available by using the full Form 5500.
- Q/A 16a relates to
checking email in order to complete the registration process. Some
email systems may mark the email as “junk” or “spam” so filers should
check in those folders if the email is not received within 5 minutes
after registration.
- Q/A 35a clarifies
the timeliness of Form 5500 electronic submissions. The Form 5500 must
be submitted and received by midnight in the plan administrator's time
zone. Additionally, in the event of a failed submission, there are
instructions to ensure timely filing compliance. Regardless of the
location of a third party administrator that might be assisting with
the filing, the deadline is based on the plan administrator’s
location.
Click
here to view a complete list of questions and answers which can be found at
the DOL's website.
DOL Expects to Release Fee Disclosure Regulations in May
The U.S. Department of
Labor (DOL) hopes to have its revisions to the service provider fee
disclosure regulations out by May, according to Michael Davis, deputy
assistant secretary of the Employee Benefits Security Administration. Mr.
Davis made this announcement at the American Society of Pension
Professionals and Actuaries (ASPPA) 401(k) Summit in Orlando, Florida last
week. The new regulations will pertain to what information must be provided
to plan sponsors about fees from service providers, including advisers.
More information about this will be provided through Compliance Corner
after its release.
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Idaho
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The Department of Insurance
has announced the release of the revised Small Employer Universal
Application within Bulletin 10-03. The application has been revised to
indicate that dependent social security numbers are required in order to
comply with Section 111 Medicare Reporting. The form is not effective
until July 1, 2010, but carriers may choose to implement prior to July.
Click
here to view the bulletin.
Click
here to view the Small Employer Universal Application.
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Nevada
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On March 16, 2010, the
Division of Insurance issued Bulletin 10-003A regarding state
continuation. The bulletin provides an overview of the state continuation
provisions. The carrier is the entity responsible for billing the
members, receiving the premium payments, and taking the 65 percent COBRA
credit with the IRS. The carrier must also provide the employer with a
listing of those individuals electing continuation coverage. The employer
is responsible for providing eligible employees and dependents an
election form containing premium cost information.
Click here for more information.
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