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IRS Releases New Guidance on Cafeteria Plans and ICHRAs

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Category: Flexible Spending, HRA, HSA, IRS, Section 125 Plans,

On May 12th, the IRS released Notice 2020-29 and 2020-33. These notices provided new relaxed rules for 2020 for making elections under Cafeteria plans, using amounts during a grace period or carryover period changes to the method determining the carryover amounts under Health FSAs and clarifying which premiums can be reimbursed under ICHRAs. The following is an explanation of both notices.

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The president signed The CARES Act into law on Friday March 27th

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Category: Cafeteria Plans, FSA, Health Care Reform, HRA, HSA,

This law has many important components, one of which permanently reinstates coverage of Over the Counter (OTC) drugs and medicines as items eligible for reimbursement under Code 213(d) expenses in FSA, HRA, and HSA plans. With this law, the drugs and medicines will no longer require participants to have a prescription to prove eligibility. In addition to the reinstatement of OTC eligibility, the bill expands the eligible OTC definition to include menstrual care products (i.e. tampons, pads, etc.).

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American Benefits Group - COVID-19 - Important Update

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Category: Commuter, Compliance and Regulatory, Flexible Spending, FSA, HRA, HSA,

COVID-19 Update - Please forward this communication to others in your organization who may need it.


Reminder - We request you help us in an effort to reduce US mail wherever possible

  • Manual Claim Reimbursement: these can be submitted electronically either by uploading information through the participant portal, using the camera feature with our mobile application or faxing to our secure fax viewer.
  • Monthly Administrative Service Fee Invoices Payments: communications have been sent to all AP contacts for each organization. Within the communication, we identify alternative methods of payment.
  • COBRA and Direct Billing: If you are currently receiving your remittances by check we ask that you sign up for ACH. Please reach out to accounting@amben.com.
 

 

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COVID-19 - Important Update

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Category: COBRA, Compliance and Regulatory, Health Care Reform, HRA,

As we continue to monitor developments and consider American Benefits Group’s response and contingency plans in the context of the coronavirus developments, our priority is the safety of our employees and ensuring our ability to continue to service our clients’ needs.

Our Critical Response Group is composed of leaders and subject matter experts across our business lines. This group is meeting daily to assess the impact across our business and in our communities, advise the executive management, develop and deploy actions.

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Bob Cummings Reelected as President of NAPBA

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Category: Cafeteria Plans, CDHC, COBRA, Compliance and Regulatory, Flexible Spending, Health Savings, HRA, HSA,

American Benefits Group CEO and Founder Bob Cummings Reelected as President of NAPBA May 28th 2019 - Bob Cummings has been reelected to serve as President of The National Association of Professional Benefits Administrators (NAPBA). A NAPBA Trustee since 2007, Cummings was first elected NAPBA president in 2015, and has been an instrumental force in the emergence of the Consumer Directed HealthCare industry over the last 20 years, orchestrating the growth of NAPBA as the primary compliance standards and best practice organization for third party employee benefits administrators serving the consumer directed healthcare industry.

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Congress Passes “Cures Act” Allowing Stand-Alone HRAs for Small Employers

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Category: Compliance and Regulatory, Health Care Reform, Health Reimbursement Arrangements, HRA,

On Dec. 7, 2016, the US Congress passed HR 34, called the “21st Century Cures Act” (Cures Act). The Cures Act legislation will permit small employers (those with fewer than 50 full-time employees during a calendar year who are not subject to the employer mandate) who do not offer a group health plan to provide a qualified small employer health reimbursement arrangement (QSEHRA).

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American Benefits Group is Featured in the current edition of BusinessWest

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Category: CDHC, COBRA, Flexible Spending, FSA, Health Reimbursement, Health Reimbursement Arrangements, Health Savings, HRA, HSA, Section 125 Plans, Transit and Parking Section 132,

When Bob Cummings started out in benefits administration, health-insurance co-pays were $3, premiums were well under $100 a month, his office ran on MS-DOS, and it issued paper statements. Much has changed since then, obviously, but not his company’s success formula, based on personalization, creativity, knowledge of a complex and ever-changing subject, and what American Benefits Group prefers to call ‘enabling technology.’
 
George O'Brien on October 5, 2015 in BusinessWest


See the entire American Benefits Group story in the October 5th Issue of BusinessWest and BusinessWest.com 
http://businesswest.com/blog/abg-thrives-in-complex-world-of-benefits-administration/ 

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ACA Reporting and HRAs

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Category: ACA, Health Reimbursement Arrangements, HRA, IRS,

Section 6056 Update

Good news!  The IRS has changed their position on both of these issues!
 
We just received final 2015 versions of the instructions for Forms 1094-B, 1095-B, 1094-C, and 1095-C.
 
Reporting HRA Coverage
In the instructions for Forms 1094-B and 1095-B, the IRS states:

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IRS Issues Notice Setting Adjusted Applicable Dollar Amount for PCOR Fee at $2.08

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Category: Compliance and Regulatory, Health Reimbursement Arrangements, HRA,

On Sept. 18, 2014, the IRS published Notice 2014-56, setting the applicable dollar amount for plan years that end on or after Oct. 1, 2014, and before Oct. 1, 2015. As a reminder, the PCOR fee is calculated using the average number of lives covered under the plan and the applicable dollar amount for that plan year. The applicable dollar amount is $2 for plan years ending after Oct. 1, 2013, and before Oct. 1, 2014. Notice 2014-56 announces that the applicable dollar amount for plan years that end on or after Oct. 1, 2014, and before Oct. 1, 2015, is $2.08. For plan years ending on or after Oct. 1, 2015, the adjusted applicable dollar amount will be published in future Internal Revenue Bulletin guidance.

With respect to payment responsibility, if a plan is fully insured, then the insurance carrier is responsible for paying the fee. If a plan is self-insured, the plan sponsor is responsible for the fee. For this purpose, “plan sponsor” is defined as the employer for a single employer plan.

IRS Notice 2014-56

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Patient Centered Outcomes Research Institute (PCOR)

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Category: Health Reimbursement Arrangements, HRA, PCOR, PPACA,

Under health care reform (PPACA), a new nonprofit corporation was established, the Patient Centered Outcomes Research Institute (PCOR).  This corporation will be funded in part by PCOR/CER (comparative effectiveness research) fees paid by certain health insurance issuers or plan sponsors of applicable self-insured health plans.  Please note that Health reimbursement Arrangements (HRA) are categorized as a self-insured health plans unless, in rare occasions, it is determined to be an excepted benefit (i.e. for vision and dental expenses only) and are therefore subject to this fee.

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Keeping Health Reimbursement Arrangements (HRAs) as a part of your benefit offerings

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Category: Compliance and Regulatory, Health Reimbursement Arrangements, HRA,

On Friday, September 13, 2013 Treasury published Notice 2013-54 (Notice) which preserves all Health Reimbursement Arrangements (HRAs) that are integrated with an underlying group health plan but eliminates an employer's ability to use a stand-alone or other tax-favored arrangements, including Premium Reimbursement Arrangements or cafeteria plans, to help employees pay for individual health policies on a tax-free basis. In addition, the Notice addresses a number of specific topics related to flexible spending accounts (FSAs) and HRAs. As such, this Alert is the first of two covering Notice 2013-54 which spells out requirements for HRAs offered starting January 1, 2014. Treasury and IRS Notice 2013-54

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Consumer Engagement Is The New Healthcare Reality


Category: Cafeteria Plans, CDHC, Flexible Spending, FSA, Health Care Reform, Health Reimbursement, Health Savings, HRA, HSA, PPACA, Section 125 Plans,

Every so often it seems another round of surveys is released demonstrating the strong, continual growth of the consumer-directed health care (CDHC) market and the accompanying behavioral shift in how Americans approach buying health care. This month has

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Important Information Regarding the PPACA Summary of Benefits and Coverage Requirement


Category: Cafeteria Plans, CDHC, Compliance and Regulatory, DOL, ERISA, Flexible Spending, FSA, Health Care Reform, Health Reimbursement, HRA, HSA, IRS, PPACA,

Group health plans, which include HRAs, MERPs, and non-excepted FSAs, must provide a Summary of Benefits and Coverage (SBC) for all eligible plans to all eligible individuals, participants and beneficiaries.

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Summary of Benefit Coverage Requirements for Health FSAs and HRAs


Category: Compliance and Regulatory, DOL, ERISA, Flexible Spending, FSA, Health Reimbursement, HHS, HIPAA, HRA, IRS, PPACA, Section 125 Plans,

Does an employer have to provide a copy of the Summary of Benefits and Coverage (“SBC”) to enrollees of Health Flexible Spending Accounts (“Health FSA”) or Health Reimbursement Arrangements (“HRA”)?

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