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Special Compliance Alert: Consolidated Appropriations Act, 2021 Expands Cafeteria Plan Flexibility

… that include health flexible spending arrangements (HFSA) and dependent care flexible spending arrangements (DCAP). Cafeteria Plan Provisions Generally HFSAs and DCAPs must operate under strict IRS rules that dictate that funds not used during a year must be forfeited – the so-called “use-or-lose” rule. The IRS several years ago did begin to permit HFSAs to allow up to $500 (recently increased to $550) to be carried over to the subsequent plan year. No similar carryovers have been permitted under DCAPs. Congress recognized that many individuals are facing vastly different health care and dependent care circumstances due to …

https://www.epicbrokers.com/insights/special-compliance-alert-consolidated-appropriations-act-2021/

Covering Coronavirus: Risk Considerations Volume 1, Issue 28

… then reimbursed by employers for the cost of their coverage. While the move may help insulate employers from annual cost spikes, it is a change for workers used to selecting benefits from only the choices offered by their employers. The new approach, which is known as Individual Coverage Health Reimbursement Arrangement (ICHRA), began with coverage plans for this year. More workers may see ICHRAs offered during their open enrollment period for 2021 coverage. However, since ICHRAs were made possible through an executive order issued by President Trump, it is possible that they could be repealed through an executive order issued …

https://www.epicbrokers.com/insights/covering-coronavirus-risk-considerations-volume-1-issue-28/

Covering Coronavirus: Risk Considerations Volume 1, Issue 27

… contact an EPIC broker. EPL Market Spotlight Immediately after the onset of the coronavirus pandemic, the Employment Practices Liability (EPL) market made swift adjustments in light of an environment rife with layoffs, furloughs, pay reduction and remote work arrangements. Anticipating a significant increase in employment litigation as a result of such measures, insurers increased rates and retentions, reduced capacity, tightened coverage terms and implemented an enhanced underwriting process. On the heels of the aforementioned activity, a movement for racial justice impacted the market, pushing diversity and inclusion to the forefront of legislative discussions that could further affect the EPL …

https://www.epicbrokers.com/insights/covering-coronavirus-risk-considerations-volume-1-issue-27/

The Hardening Stop Loss Market

While the year 2020 has softened the medical and dental insurance markets, with COVID-19 suppressing claim costs and continuing to place downward pressure on the entire healthcare economy, stop loss has been a very different story. Over the last 12 to 18 months, the reinsurance market continues to harden, and there seems to be a wide variety of reasons, none of which appear to be slowing down. Viewpoints from Adam Okun For those who are unfamiliar, most employer-sponsored healthcare costs in this country are not paid by insurance carriers, but by the employers directly. This arrangement, known as …

https://www.epicbrokers.com/insights/the-hardening-stop-loss-market/

It’s 2020 and Nothing About Healthcare Is Settled

… Trump’s executive orders. The two he may find most objectionable are: Presidential Executive Order Promoting Healthcare Choice and Competition Across the United States (which allows association and short-term medical insurance plans) Minimizing the Economic Burden of the Patient Protection and Affordable Care Act Pending Repeal (which orders all executive departments to use best efforts to thwart the Affordable Care Act) Another at-risk executive order is the one allowing Health Reimbursement Arrangements to pay for individual insurance purchased on the exchanges. But there is no doubt the Biden administration will seek to expand access and lower the cost

https://www.epicbrokers.com/insights/its-2020-and-nothing-about-healthcare-is-settled/

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/