Flexible Spending Accounts (FSA)

We provided information at the end of April, 2020 about the IRS' and DOL's determination that the "pause" button was hit on a number of regular timing and payment due dates relating to COBRA, health plan claims (including health care FSA claims), and HIPAA Special Enrollment Periods. Is it ending?

The Consolidated Appropriations Act contains many benefit changes, all of which are optional on the part of the employer. We know this is coming long after open enrollment has ended for most plans, but employers will want to pay close attention and decide which (if any) they'd like to adopt.

The IRS has now released all of the 2021 benefit limits. Earlier this year, they also released the High Deductible Health Plan (HDHP) and Health Savings Account (HSA) limits.

In two new IRS Notices (2020-29 and 2020-33), there are temporary changes to the rules governing Flexible Spending Accounts (FSAs) through 2020 due to COVID-19, and permanent changes to both FSAs and certain Health Reimbursement Arrangements (HRAs) that will begin this year. 

The DOL and IRS issued a Notice that announced a "pause" in the timelines that affect many COBRA and HIPAA Special Enrollment Period timelines during the COVID-19 National Emergency pandemic. It also provides for additional timelines relating to all health and welfare plan claim filings and appeals.

The Coronavirus Aid, Relief, and Economic Security Act (CARES) Act has now been signed into law on March 27, 2020. It is a mammoth bill of over 880 pages, and contains many employee benefit related items. This post deals with two health and welfare items: over-the-counter drugs and telemedicine.

Much later than usual, the IRS released the 2020 retirement plan contribution limits. Earlier this year, they also released the High Deductible Health Plan (HDHP) and Health Savings Account (HSA) limits. We now also have the cafeteria plan, adoption credit, and transit benefit limits as well.

Kushner President and CEO Gary Kushner was invited to present a 5-minute (and exactly 5 minutes) speech at this year's DisruptHR conference. His topic was on "Total Rewards: Why are We Doing What We're Doing?" Here's the video of that talk.

The U.S. Department of Labor (DOL) recently published an Information Letter that confirms the general preemption under ERISA of state civil laws that require employers to obtain written consent before withholding amounts from employees’ wages for contribution to a benefit plan subject to ERISA.

On December 14, 2018, a US District Judge in Texas issued a ruling that the entire ACA was unconstitutional given that the individual mandate contained in it no longer had a tax penalty, the basis of the 2012 US Supreme Court ruling upholding the ACA's constitutionality. 

The IRS has announced the limits for employee benefit plans for 2019.