Under the San Francisco Health Care Security Ordinance, covered employers in San Francisco are required to contribute to the health care costs of its covered employees.  A covered employee is an employee who has been employed for more than 90 days and regularly works at least 8 hours per week in San Francisco.

Each quarter, covered employers are required to make health care expenditures to or on behalf of their covered employees. The required minimum health care expenditure is calculated by multiplying the total number of “hours paid” to that employee by the applicable expenditure rates, which for 2013 are as follows:

Covered employers must submit the 2012 Annual Reporting Form by April 30, 2013.  Employers who do not submit an annual report on time may be subject to penalties of $500 per quarter.

The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations.

As required by U.S. Treasury rules, we inform you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this Benefit Beat is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any penalties that may be imposed by the Internal Revenue Service.

Change in Medicare Part D Annual Enrollment Period plus New Model Notices of Creditable and Non-Creditable Coverage

The health care reform law, enacted in 2010, changed the Medicare Part D enrollment period.  Beginning with enrollment for the 2012 year, the annual Medicare Part D annual open enrollment period is changing from November 15th through December 31st to October 15th through December 7th.  As a result of the change in annual enrollment dates, all Medicare Part D notices of creditable or non-creditable coverage must be provided prior to October 15, 2011, rather than November 15, 2011. 

CMS has issued revised model Notices of Creditable and Non-Creditable Coverage to be used on or after April 1, 2011, in both English and Spanish.  As background, the Medicare Part D Notice of Creditable or Non-creditable Coverage must be provided at least annually, prior to the Medicare Part D open enrollment period.

• Model Individual Creditable Coverage Disclosure Notice Language (English or Spanish)
• Model Individual Non-Creditable Coverage Disclosure Notice Language (English or Spanish)

2012 Part D Benefit Limits

The Centers for Medicare and Medicaid Services have released the 2012 cost of living adjustments for Medicare Part D prescription drug benefits.  The following are selected modified limits relating to the standard drug benefit and the retiree drug subsidy.

The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations.

As required by U.S. Treasury rules, we inform you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this Benefit Beat is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any penalties that may be imposed by the Internal Revenue Service.