January 26, 2016
BCI Compliance Tools 
NEW Compliance Link Service Available February 1st
Benefit Concepts is pleased to introduce Compliance Link, a new internal service developed to replace the current Compliance Q/A resource through bcicompliance@mybciteam.com . 

Effective  2/1/16, BCI has retained  Marathas, Barrow and Weatherhead (MBW) to provide Producers and Account Managers direct access to professional counsel for guidance related to ERISA, COBRA, Compliance, Employee Benefits, and The Affordable Care Act.

MBW will provide a direct response to most federal level questions  within 24 hours. Questions of higher complexity, including state based questions, may require additional research time.

To better understand the protocol for accessing Compliance Link, please join one of the below conference calls to review the service and usage guidelines. 

Join BCI Conference Call to Understand Service & Best Practices
Please plan to attend a 15 minute Compliance Link audio call scheduled for:
 
Wednesday, January 27th at 2:00pm
Dial:  312-757-3121 / Access Code: 391-741-005

or

Thursday, January 28th at 10:00 am
Dial:  408-650-3123 / Access Code: 569-573-853
 
If you are unable to attached one of these sessions or if you require additional information, contact Kerstin Kornblum via email or  713-728-7240.

Legislation 
IRS Releases Five Healthcare Tax Tips for Employers
On January 13, 2016, the Internal Revenue Service (IRS) released Health Care Tax Tip 2016-05, "Five Affordable Care Act Facts for Applicable Large Employers (ALE)." An ALE is generally one with 50 or more full-time employees, including full-time equivalent employees. The highlighted facts are as follows:
  1. ALEs have annual reporting responsibilities.
  2. If an ALE provides self-insured health coverage to employees, the ALE must file an annual return reporting certain information for each employee covered.
  3. ALEs must either offer minimum essential coverage that is affordable and that provides minimum value to their full-time employees and their dependents, or potentially make an employer-shared responsibility payment to the IRS.
  4. ALEs may be required to report the value of the health insurance coverage provided to each employee on their Form W-2.
  5. If an ALE has exactly 50 employees, the ALE can purchase affordable insurance through the Small Business Health Options Program (SHOP).

  6. IRS Top 5 ACA ALE Tips

    ACA Tax Provisions for Employers
Healthcare 
Treasury and IRS Issue Q&A on ACA Group Market Reforms
The Department of Treasury and the Internal Revenue Service (IRS) have issued Notice 2015-87, offering guidance on various provisions of the Affordable Care Act in relation to employer-sponsored group health coverage. This guidance is effective December 16, 2015, unless revisions are applied or an announcement counteracts this guidance for Health Reimbursement Accounts (HRA), Flexible Spending Accounts (FSA), Flex Plans, COBRA, and Opt-Outs.

IRS Notice 2015-87

Final Rules for ACA Group Market Reform & Grandfathered Plans
The Department of Labor (DOL), The Treasury, and Department of Health and Human Services (HHS) issued final regulations for the Affordable Care Act group market reforms and for maintaining status of a grandfathered health plan. Most changes are generally effective the first day of the first plan year beginning on or after January 1, 2017.

ACA Final Rules for Group Market Reforms and Grandfather Status

Human Resources 
DOL Interpretation of Joint Employment
On January 20, 2015, the Department of Labor's (DOL) Wage and Hour Division (WHD) issued an Administrator's Interpretation (No. 2016-1) on joint employment under the Fair Labor Standards Act (FLSA) and Migrant and Seasonal Agricultural Worker Protection Act (MSPA).

DOL states within the interpretation that, "Under these laws, it is a longstanding principle that a worker can be jointly employed by two or more employers who are both responsible, simultaneously, for compliance. Whether an employee has more than one employer is important in determining employees' rights and employers' obligations under the FLSA and MSPA."

For decades and during hundreds of investigations per year, the Wage and Hour Division has examined employment relationships for possible wage and other labor violations and states, "Protecting workers in fissured workplaces (where there is increasingly the possibility that more than one employer is benefiting from the work) has recently been a major focus for us. WHD will consider joint employment to hold all responsible parties accountable for their legal obligations."

DOL Joint Employment Under FLSA and MSPA 

Employers Must Provide Annual Medicare Part D Disclosure
Since 2006, this Medicare requirement is applicable to employers that provide prescription drug coverage to anyone who is eligible for Medicare Part D. Regardless of whether an employer provides retiree drug benefits or not, the employer is required to release this disclosure. 

For 2016 calendar year plans, the disclosure must occur no later than February 29, 2016.

CMS Medicare Creditable Coverage Requirements

Updated Employer Disclosure Form

Retirement 
Employers Retiree Drug Subsidy and Annual Medicare Part D Disclosure to Retiree
With respect to a qualified covered retiree that the employer is claiming a retiree drug subsidy (RDS), an employer that has been approved for the retiree drug subsidy (RDS) is exempt from filing the notice with the Centers for Medicare and Medicaid Services (CMS).

The employer RDS application serves as the disclosure to CMS. If an employer is approved for RDS for some or certain groups, the notice will be required for all groups other than those for which the employer is claiming the RDS. A sample scenario is an employer applies for RDS is required to disclose this information for any retiree who is Medicare Part D-eligible and provide the Annual Medicare Part D Disclosure no later than February 29, 2016, for 2016 calendar year plans.

Refer to above links for more information on Creditable Coverage Requirements and to access the updated Employer Disclosure Form.

Benefit Concepts, Inc. 
Copyright © 2016. All Rights Reserved.
  
INTERNAL DISCLAIMER: This internal communication is produced by the knowledge resource team of Benefit Concepts to provide compliance consulting, publications, analysis, government relations, research, surveys, training and information management. Contact bcicompliance@mybciteam.com for more information. This publication is for informational purposes only and does not constitute legal advice. Consult with legal, tax, and other advisers before applying this information to your specific situation. Additionally, this message contains confidential information and is intended for internal company use only. If you are not the intended recipient, you are hereby notified that disclosing, copying, distributing, or taking any action in reliance on the contents of this information is strictly prohibited. Employees and Licensed Agents of Benefit Concepts are expressly required not to infringe or use defamatory language regarding this communication or authorize any infringement of copyright or any other legal right in consideration of this email communication.  Any such communication or action is contrary to company policy and outside the scope of the employment or compensation terms of the individual concerned. The company will not accept any liability in respect of such communication or action, and the Employee or Licensed Agent responsible will be personally liable for any damages or other liability arising. Employees or Licensed Agents who are aware of such breach must notify company management.   
visit us at mybciteam.com