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November 14, 2011
2012 limits applicable to MSAs, LTC premium, adoption assistance programs and qualified transportation expenses
In Revenue Procedure 2011-52, the IRS released 2012 limits relating to MSAs, LTC premium, adoption assistance programs. Following are amounts applicable to tax years beginning in 2012. Please note that the 2012 annual limits applicable to health savings accounts were released earlier this year (see Health Savings Accounts: 2012 Cost of Living Adjustments, Benefit Beat, 6/7/11).
Form 5500 Non-Filer Project
Generally, a plan subject to ERISA must file an annual report, known as a 5500. Certain exceptions apply, specifically to small welfare benefit plans.
2012 Pension and Retirement Plan Limits
The 2012 plan limits, applicable to defined benefit and defined contribution plans, have been issued by the IRS (highlights below; also see IRS COLA table).
Reminder: Expiration of Permissible Rollovers from FSA or HRA to HSA
When the concept for health savings accounts was enacted in 2004, the law allowed, for a limited period of time, the ability to roll over account balances from flexible medical spending accounts or health reimbursement arrangements into health savings accounts, as long as certain conditions are met. The ability to roll from these types of accounts expires December 31, 2011.
October 18, 2011
HRB 40 - ACA Updates: CLASS Act Suspended, Increase in ERRP Cost Thresholds, and What Are Essential Benefits?
Long term care needs were addressed in the health care reform law through the Community Living Assistance Services and Supports Act (CLASS Act). The Department of Health and Human Services (HHS) was charged with establishing a national, voluntary long term care insurance program beginning in 2012 whereby a participating individual would contribute to the CLASS Program for 5 years (vesting period) before benefits (up to $50/day cash benefit) became available. The payments could be used to purchase non-medical services and support necessary to maintain community residence, including, home modifications, assistive technology, accessible transportation, homemaker services, respite care, personal assistance services, home care aides, and nursing support.
October 13, 2011
Should You Re-Classify Your Employees?
Employment classification has created much angst between government agencies, both federal and state, and employers. At the heart of this conflict is whether an individual should be classified as an independent contractor, or as an employee. Contrary to popular belief, an employer does not necessarily have the discretion to classify employees as independent contractors, or as common law employees; rather, it is determined by the facts and circumstances of the work relationship.
Reporting Welfare Benefit Plan Failures - Updated Form 8928
The IRS has updated its Form 8928 and Instructions. This form is to be used by group health plans and employers to self-report certain welfare benefit plan failures, including but not limited to violations relating to:
A Final Reminder: Provide Medicare Part D Notices by October 14th
The Medicare Part D enrollment period is October 15 to December 7, 2011. Therefore, all Medicare Part D notices of creditable or non-creditable coverage must be provided prior to October 15, 2011.
IRS Clarifies Qualified Medical Expenses
The IRS has issued three recent Information Letters relating to the determination of qualified medical expenses. As background, for a medical expense to be reimbursed by certain medical reimbursement plans, such as a flexible medical spending account (FSA), a health savings account (HSA), a health reimbursement arrangement (HRA), or an Archer medical savings account (Archer MSA), the expense must be specifically for the purpose of ”….the diagnosis, cure, mitigation, treatment, or for the purpose of affecting any structure or function of the body…” [IRS Section 213(d)].
Medicare Mandatory Reporting for HRAs: Increased Threshold Levels and Exhausted Account Balances
As a means of enforcing the Medicare Secondary Payer (MSP) Rules, the Centers for Medicare and Medicaid Services (CMS) impose a reporting requirement upon insurers, third party administrators, and plan administrators of self-funded, self-administered group health plans. CMS considers health reimbursement arrangements (HRAs) to be a group health plan for purposes of the MSP rules; and thus, subject to the Medicare Mandatory Reporting Requirement (see prior Benefit Beat articles, Mandatory Medicare Reporting for HRAs Clarified, Aug, 2010, and Updated Information: Mandatory Medicare Reporting for HRAs, June, 2010).