The IRS has released additional guidance on the use of health flexible spending arrangements (FSA) and health reimbursement arrangement (HRA) debit cards for buying over-the-counter (OTC) medicines and drugs in light of new restrictions imposed by the Affordable Care Act. The Act revised the definition of qualified medical expenses for employer-provided health and accident plans… Continue Reading
Monthly Archives: December 2010
Agencies Seek Information on Value-Based Insurance Designs
The Departments of Labor, Health and Human Services, and the Treasury have issued a request for information on how group health plans and health insurance issuers can employ value-based insurance designs (VBID) in the coverage of recommended preventive services, as required by the new health care law. The Affordable Care Act added a new section… Continue Reading
Extension of Dependent Coverage Under California Law May Result in Unforeseen Tax Consequences
California has been at the forefront of implementing the federal health care reform law, the Patient Protection and Affordable Care Act. For example, California was the first state to establish a health insurance exchange program under the Act. However, California’s implementation has not been entirely consistent with federal provisions. In 2010, the state enacted a… Continue Reading
IRS Delays Enforcement of Highly Compensated Individual Provisions in Health Care Law; Seeks Comment on Future Guidance
Due to continued confusion regarding the provisions in the Affordable Care Act that prohibit insured group health plans from discriminating in favor of highly compensated individuals, the IRS has decided to delay enforcement of this section until further guidance is issued. IRS Notice 2011-1 – Affordable Care Act Nondiscrimination Provisions Applicable to Insured Group Health… Continue Reading
EBSA Issues New Set of FAQs on Affordable Care Act Implementation
The DOL’s Employee Benefits Security Administration has released a fifth set of frequently asked questions (FAQs) addressing various issues related to the implementation of the new health care law, including its impact on the Mental Health Parity and Addiction Equity Act. The guidance responds to questions related to the following areas: value-based insurance design in… Continue Reading
Virginia Judge Declares Portions of Health Care Law Unconstitutional
In a closely-watched case, a federal court judge in Virginia has ruled (pdf) that the individual mandate provisions of the Affordable Care Act are unconstitutional. Judge Henry E. Hudson declared that requiring most people to obtain minimal essential health care coverage by 2014 or pay a monetary penalty “exceeds the constitutional boundaries of congressional power.”… Continue Reading
HHS Issues Additional Guidance on Mini-Med Plans
The Department of Health and Human Services’ (HHS) Office of Consumer Information and Insurance Oversight (OCIIO) has released two sets of additional guidance on the handling of limited benefit “mini med” health insurance plans. The new health care law imposes certain limitations on restricting the annual dollar limits for essential health coverage. Under the Affordable… Continue Reading
New Class Action Wave Against Wellness Programs?
This week, the U.S. District Court of the Southern District of Florida certified a plaintiff class in a case involving an employer’s wellness program. In Bradley Seff v. Broward County, the County of Broward, Florida (“Broward”) was sued by an employee seeking declaratory, injunctive and equitable relief, compensatory damages, costs and attorney’s fees, claiming that… Continue Reading
IRS Issues Small Business Health Care Tax Credit Guidance
The IRS has released additional guidance material to help eligible small employers claim the new small business health care tax credit for the 2010 tax year. The tax credit, created by the Affordable Care Act, is targeted to small businesses that employ moderate- and lower-income workers, and contribute an amount equivalent to at least half… Continue Reading
Virginia Federal Court Judge Upholds Constitutionality of Health Care Law
Proponents of the Affordable Care Act were handed a victory on Tuesday when a federal court judge in Virginia dismissed (pdf) yet another lawsuit challenging the constitutionality of the health care law’s individual mandate, among other provisions. The case was brought by Liberty University and a number of individuals affiliated with the Christian school against various… Continue Reading