By Brian M. Pinheiro and Edward I. Leeds on Posted in COBRA,COVID-19The IRS (with the concurrence of the DOL and HHS) has issued new guidance explaining how the extension of the deadline for paying COBRA premiums will be applied. The extension of deadlines for individuals to elect COBRA and pay for COBRA premiums on account of the COVID-19 pandemic remains in effect. These rules operate by [&hellip… Continue Reading »
By Brian M. Pinheiro and Edward I. Leeds on Posted in American Rescue Plan Act (ARP),COBRA,COVID-19This is a reminder that a COBRA notice deadline is approaching. It applies to employers that are subject to the federal COBRA rules. The American Rescue Plan Act (ARPA) requires employers that are subject to the federal COBRA rules to provide notice to those who do not currently have COBRA continuation coverage, but who are [&hellip… Continue Reading »
By Edward I. Leeds and Brian M. Pinheiro on Posted in COBRA,COVID-19The United States Department of Labor has issued much anticipated guidance and model forms under the COBRA subsidy rules introduced by the American Rescue Plan (ARP). The FAQ guidance and forms clarify some issues that employers have raised about the COBRA subsidy provisions of the ARP, but leave a number of the most significant questions unanswered. Clarifications and confirmations [&hellip… Continue Reading »
By Brian M. Pinheiro and Edward I. Leeds on Posted in American Rescue Plan Act (ARP),COBRA,Consolidated Appropriations Act (CAA),COVID-19The American Rescue Plan (ARP) will have significant and immediate impacts on employee benefit plans, employers, and other plan sponsors and plan administrators. President Biden signed the ARP stimulus bill today. We highlight the most significant employee benefits and executive compensation changes under the ARP below. COBRA Provisions Section 9501 of the ARP requires employers [&hellip… Continue Reading »
By Edward I. Leeds, Brian M. Pinheiro, Brian D. Pedrow and John Devine on Posted in COVID-19,Healthcare,LegislationPresident Trump signed additional COVID-19 relief legislation (H.R. 133) into law on December 27, 2020. The deal includes a $900 billion economic stimulus package that will provide relief benefits to businesses and individuals impacted by the COVID-19 pandemic. The following is a summary of some of the provisions that will have a major impact: Financial [&hellip… Continue Reading »
By Edward I. Leeds and Brian M. Pinheiro on Posted in Health Plans,Healthcare Providers / Suppliers,LegislationSummary The U.S. Supreme Court unanimously upheld an Arkansas statute that regulates the price that pharmacy benefit managers (PBMs) pay retail pharmacies for prescription drugs. The Upshot Act 900 in Arkansas regulates the price paid by PBMs for the cost of drugs purchased at retail pharmacies through mechanisms designed to ensure that the pharmacy would [&hellip… Continue Reading »
By Brian M. Pinheiro, Edward I. Leeds and Paige A. Haughton on Posted in Healthcare,Legislation,Non-discrimination RulesThe U.S. District Court for the Eastern District of New York issued an order on Monday (August 17, 2020) that prevented federal rules removing nondiscrimination protections from taking effect. The rules would have removed protections against discrimination based on gender identity and sex stereotyping from the nondiscrimination provision within the Patient Protection and Affordable Care Act (ACA). [&hellip… Continue Reading »
By Edward I. Leeds and Brian M. Pinheiro on Posted in Health Plans,Healthcare Providers / Suppliers,NondiscriminationThe Centers for Medicare and Medicaid Services (CMS) of the U.S. Department of Health and Human Services (HHS) has finalized rules that narrow and eliminate various nondiscrimination requirements under Section 1557 of the Affordable Care Act (Act). Section 1557 prohibits certain health care providers, health benefit plans, and health insurers from discriminating against individuals on account [&hellip… Continue Reading »
By Brian M. Pinheiro on Posted in CARES Act,COVID-19,Employee Benefits/Executive CompensationThe IRS has released Notice 2020-50, which provides guidance to employers that have amended their retirement plans to take advantage of provisions under the CARES Act that provide access to special plan distributions, known as Coronavirus-Related Distributions (CRDs), and expanded plan loans. Coronavirus-Related Distributions The CARES Act permits employers to amend their eligible retirement plans to [&hellip… Continue Reading »
By Brian M. Pinheiro and Jessica M. DuBois on Posted in COVID-19The Internal Revenue Service (IRS) issued Notice 2020-46 providing guidance to employers whose employees forgo sick, vacation, or personal leave to aid victims of COVID-19. Generally, when an employee donates sick, vacation, or personal leave to which he or she otherwise is entitled, the donation is treated as an assignment of income – the employee is treated [&hellip… Continue Reading »
By Brian M. Pinheiro and Jessica M. DuBois on Posted in COVID-19,Employee Benefits/Executive CompensationThe Internal Revenue Service (IRS) issued Notice 2020-46 providing guidance to employers whose employees forgo sick, vacation, or personal leave to aid victims of COVID-19. Generally, when an employee donates sick, vacation, or personal leave to which he or she otherwise is entitled, the donation is treated as an assignment of income – the employee is treated [&hellip… Continue Reading »
By Brian M. Pinheiro and Edward I. Leeds on Posted in COVID-19,Employee Benefits/Executive Compensation,Health PlansThe IRS released Notice 2020-42, which provides temporary relief during calendar year 2020 from the physical presence requirements for participant elections in retirement plans. Under the new guidance, there is relief during calendar year 2020 from the physical presence requirement for any participant election witnessed by a notary public through an electronic system that uses remote [&hellip… Continue Reading »
By Brian M. Pinheiro and Edward I. Leeds on Posted in COVID-19The Internal Revenue Service (IRS) has issued new guidance, Notice 2020-29, in response to the COVID-19 pandemic, providing for temporary flexibility with respect to mid-year elections made during 2020 under Code section 125 cafeteria plans related to employer-sponsored health coverage, health Flexible Spending Arrangements (health FSAs), and dependent care Flexible Spending Arrangements (DC FSAs). The guidance [&hellip… Continue Reading »
By Brian M. Pinheiro on Posted in CARES Act,COVID-19The Internal Revenue Service has issued frequently asked questions (FAQs) clarifying the special distribution options and loan relief provisions applicable to eligible retirement plans and IRAs found in section 2202 of the CARES Act. The following is a high-level overview of the clarifications detailed in the FAQs. A more in-depth analysis of the CARES Act can be [&hellip… Continue Reading »
By Brian M. Pinheiro on Posted in COVID-19,Employee Benefits/Executive CompensationThe Pension Benefit Guaranty Corporation (PBGC) – the federal agency created by the Employee Retirement Income Security Act of 1974 (ERISA) to insure certain defined benefit pension plans offered by private-sector employers – has announced that it will extend deadlines for upcoming premium payments and certain other required plan filings under Title IV of ERISA to July [&hellip… Continue Reading »
By Brian M. Pinheiro, Edward I. Leeds and Jessica M. DuBois on Posted in CARES Act,COVID-19,Health Benefits,Health PlansThe Coronavirus, Aid, Relief, and Economic Security Act, or CARES Act, which passed the Senate last night, is Congress’s third legislative answer to the coronavirus pandemic. The CARES Act represents a heavily negotiated bipartisan effort that now moves to the House, where Speaker Nancy Pelosi has said she will seek swift approval. The CARES Act [&hellip… Continue Reading »
By Brian M. Pinheiro and Edward I. Leeds on Posted in COVID-19,Health Benefits,Health PlansAcross the United States, employers are carefully considering how the COVID-19 pandemic is affecting their business. As we await further guidance and pronouncements from federal, state, and local officials, some employers are being forced to consider furloughs for some or all of their workforce. We can assist employers in strategizing on furlough decisions and crafting [&hellip… Continue Reading »
By Brian M. Pinheiro and Edward I. Leeds on Posted in COVID-19,Health PlansThe Internal Revenue Service (IRS) issued a notice that allows individuals to participate in a health savings account (HSA) while participating in a high deductible health plan (HDHP) that provides coverage for both the testing and treatment of coronavirus (COVID-19), without first satisfying the required deductible. The March 12 notice, titled Notice 2020-15, means that participants in [&hellip… Continue Reading »
By Edward I. Leeds, Brian M. Pinheiro and Jessica M. DuBois on Posted in COVID-19To encourage individuals to seek prompt medical attention for the coronavirus (COVID-19), a number of states have taken, or are considering, action to eliminate the costs associated with testing and treating the virus and to increase access to such testing and treatment. Colorado, California, and New York, for example, have directed commercial insurers to eliminate co-pays, deductibles, [&hellip… Continue Reading »
