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Individual Coverage HRAs May Be the Solution You Seek

A little bit of healthcare history. In December 2016, President Obama signed the 21st Century Cures Act, which, among other things, reinstated the ability for small employers (fewer than 50 employees) to reimburse their employees for purchasing health insurance on an individual market as long as those employers met several guidelines. The vehicle for this reimbursement was the Qualified Small Employer Health Reimbursement Arrangement (QSEHRA). These plans gained traction in some markets, and in 2018, the Trump administration issued additional guidance to expand the use of these Health Reimbursement Arrangements (HRAs). In 2019, newly finalized rules created two novel types …

https://www.epicbrokers.com/insights/individual-coverage-hras-may-be-the-solution-you-seek/

Spotlight on The EPL Market 

The Perfect Storm: The COVID Economy and the Movement for Racial Justice The Employment Practices Liability (EPL) market made swift adjustments at the onset of the COVID-19 pandemic. Layoffs, furloughs, pay reductions, and remote work arrangements had EPL underwriters anticipating a significant increase in employment litigation. In anticipation of the increased risk, EPL insurers began increasing rates and retentions, reducing capacity, tightening coverage terms and enhancing the underwriting process. Just as the EPL market was starting to adjust to the COVID economy, a powerful social justice movement, demanding the dismantling of systemic racism, began to gain significant support and …

https://www.epicbrokers.com/insights/spotlight-on-the-epl-market/

IRS Releases Final 2020 ACA Reporting Forms and Instructions

Quick Facts The IRS recently released final 2020 Forms 1094-C and 1095-C and Instructions for Forms 1094-C and 1095-C (Instructions). The IRS also released final Forms 1094-B and 1095-B and related instructions. The 2020 forms largely mirror the 2019 versions, but they include a few substantive changes. Employers must now complete the previously optional “Plan Start Month” box on Form 1095-C. The Instructions and forms include substantial updates affecting employers that offer Individual Coverage Health Reimbursement Arrangements (ICHRA). Employers must furnish and file required forms in early 2021. Overview Recently, the Internal Revenue …

https://www.epicbrokers.com/insights/irs-releases-final-2020-aca-reporting-forms-and-instructions/

IRS Announces Increased Limits for Certain Employee Benefits for 2021

The Internal Revenue Service (IRS) has released Revenue Procedure 2020-45 in which it has updated many key employee benefit limits that it adjusts annually to account for inflation. Effective for tax years beginning in 2021, the following limits will apply: IRC Section 125 health flexible spending arrangements (HFSA): $2,750/year IRC Section 132 qualified transportation fringe benefits: $270/month IRC Section 137 adoption assistance program expenses: $14,400/year (subject to phase out for individuals with adjusted gross income in excess of $216,660) IRC Section 9831 qualified small employer health reimbursement arrangement (QSEHRA): $5,300/year ($10 …

https://www.epicbrokers.com/insights/irs-announces-increased-limits-for-certain-employee-benefits-for-2021/

Plant and Harvest Your Wellness Budget Tree

… works diligently to ascertain wellness funds for our clients. Beyond improving employees’ health, putting these wellness dollars to work can drive down claim costs and generate savings for your health plan. This year, the EPIC New York financial team surveyed clients to develop a benchmark of their various wellness fund arrangements. We found that wellness funds are available to employers of any size, with every carrier, no matter if that employer is in a fully insured, minimum premium, or self-funded plan. However, the amount of those funds can vary greatly between carriers and depends heavily on the client’s …

https://www.epicbrokers.com/insights/plant-and-harvest-your-wellness-budget-tree/

IRS Releases Draft Forms for 2020 ACA Reporting

Quick Facts The Internal Revenue Service (IRS) recently released draft 2020 Forms 1094-C and 1095-C for Affordable Care Act (ACA) reporting. The draft Form 1095-C reflects several substantive updates affecting employers that offer Individual Coverage Health Reimbursement Arrangements (ICHRA). The draft Form 1095-C removes Part III from Page 1 and moves it to Page 3. The IRS has yet to release draft instructions for the 2020 forms, but it expects to release final 2020 forms and instructions by year end. The IRS also issued draft Forms 1094-B and 1095-B. Overview The Internal Revenue Service …

https://www.epicbrokers.com/insights/irs-releases-draft-forms-for-2020-aca-reporting/

Checklist for Strategic and Compliant Employee Benefit Plan Communications

… small amounts of benefits information using new technology (such as videos, texts and mobile apps) will lead to greater perception of value in employee benefits. Understanding Individuals can take full advantage of benefits only if they understand what options are available and how they work. FSAs, HSAs and health reimbursement arrangements (HRAs) require additional targeted campaigning to avoid confusion and encourage buy-in. Employees who understand their coverage options and feel empowered to enroll make better-informed, cost-effective health care decisions. Drive Enrollment If you offer HDHPs, strategic communication and implementation is essential for securing employee participation, maximizing enrollment …

https://www.epicbrokers.com/insights/checklist-for-strategic-and-compliant-employee-benefit-plan-communications/

Cost Modeling Projections

… claim with lifetime medical costs that can easily be in the millions of dollars. Typically, these patients, even when in an employer plan are Medicare-eligible. Employers should consider their obligations to establish a Workers Compensation Medicare Set-Aside Arrangement to indemnify Medicare for the medical costs they pay resulting from workplace diseases or accidents. Summary As of the date of this publication, our model calculates net decrease in healthcare spending of $135B in 2020 and an increase of $36B in 2021 as a result of all impacts of COVID-19. In this context payers include all private health …

https://www.epicbrokers.com/insights/cost-modeling-projections/