Benefits Blast

On January 30, 2023, the White House announced its intent to extend both the COVID‑19 National Emergency and the COVID‑19 Public Health Emergency declarations to May 11, 2023, and to end both emergency declarations on that date. The Public Health Emergency was initially declared by the Department of Health and Human Services as of January 27, 2020. The Secretary of Health and Human Services has authority to renew the Public Health Emergency in increments of 90 days.

Autumn’s chill has settled in, which means the 2022 proxy season is just around the corner. Given (1) the continuing impact of the COVID-19 pandemic and related supply chain issues and (2) the unprecedented interest in issues surrounding executive compensation, it is important to prepare early to avoid any unanticipated hitches and take advantage of opportunities to proactively address compensation matters through effective proxy disclosures, well-executed shareholder engagement, and informed compensation committee actions. 

On May 10, 2021, the Internal Revenue Service (IRS) released Notice 2021-26 (the Notice), clarifying the federal income tax implications of recent temporary changes to rules governing dependent care flexible spending accounts (DCFSAs) as set forth under the Consolidated Appropriations Act, 2021 (CAA), and the American Rescue Plan Act of 2021 (ARPA).

On April 7, 2021, the Department of Labor (the DOL) issued guidance (the Guidance) and model notices and forms for the COBRA subsidy provision of the American Rescue Plan Act (the Act). 

During this episode of Winston & Strawn’s Benefits Blast Podcast, Employee Benefits attorneys David Rogers and Ruth Wimer and Pro Bono Counsel Tara Moss discuss the Retention Credit details, guidelines, and opportunities for tax-exempt organizations.

At the beginning of the pandemic, the federal government suspended certain COBRA and ERISA deadlines due to the COVID-19 National Emergency. These deadlines included the timeframe to elect COBRA coverage, make initial and subsequent COBRA payments, request special enrollment in a group health plan and file certain claims and appeals under ERISA.

The Consolidated Appropriations Act, 2021 (CAA) includes a provision allowing employers to make tax-free payments on their employees’ student loans of up to $5,250 per year through January 1, 2026. This is a five-year extension of a provision originally enacted in the CARES Act.

The Consolidated Appropriations Act, 2021 (the Act) provides additional funding for mental health and substance abuse services and also provides guidance and imposes additional reporting and compliance obligations on group health plans and health insurance issuers that provide mental health (MH) and/or substance use disorder (SUD) benefits.

In an unexpected but hard-fought win for consumers of medical care, surprise billing reform was signed into law as part of the $900 billion Consolidated Appropriations Act, 2021. The aptly-named “No Surprises Act” (the Act) is the result of a multi-year, bi-partisan effort to end surprise billing for medical plan participants and hold them harmless from balance billing by out-of-network providers, including federally regulated air ambulances.

The Consolidated Appropriations Act, 2021 (Act), includes relief under tax-qualified ERISA retirement plans with respect to plan loans and withdrawals for certain natural disasters in 2020 through February 25, 2021.

The Consolidated Appropriations Act, 2021 (Act), includes relief for sponsors of overfunded defined-benefit pension plans who make qualified transfers to fund a portion of their retiree medical benefit liabilities.

The Consolidated Appropriations Act, 2021 (CAA) includes rules requiring brokers and consultants to disclose compensation that those service providers receive to steer health plan sponsors to certain insurance carriers, benefits administrators, and other vendors. These new comprehensive disclosure rules add a layer of transparency to what has otherwise been a gray area for many employer plan sponsors and are more comprehensive than limited disclosures in effect today on the Form 5500.   

Section 201 of the No Surprises Act, recently enacted as part of the Consolidated Appropriations Act, 2021 (CAA), prohibits group health plans, health plan insurers, and issuers of health insurance coverage (together, Covered Parties) from entering into contracts that restrict a plan from accessing and sharing certain information.

The Consolidated Appropriations Act, 2021 (CAA) includes relief for plan sponsors offering Health Care and/or Dependent Care Flexible Spending Accounts (FSAs). These voluntary rules will benefit participants who have FSA funds left over due to medical care provider and school/daycare closures and remote work arrangements in 2020 as a result of the pandemic.

The Consolidated Appropriations Act, 2021 (CAA), adds a new annual reporting requirement that requires every group health plan and every health insurance issuer that offers group or individual health insurance to submit an informational report on pharmacy benefits and drug costs with the Secretary of Health and Human Services (HHS), the Secretary of Labor, and the Secretary of the Treasury. Church plans are exempt from this reporting requirement.

On October 2, 2020, U.S. Health and Human Services Secretary Alex Azar quietly announced that he has renewed the COVID-19 public health emergency declaration, effective October 23, 2020. This is the third extension of the public health emergency declaration.

On Thursday, July 23, 2020, U.S. Health and Human Services Secretary Alex Azar announced via Twitter that he had signed a renewal of the COVID-19 public health emergency declaration, which was scheduled to end this week.

The Internal Revenue Service (IRS) has issued new guidance intended to provide employers sponsoring safe harbor 401(k) (and 403(b)) plans with flexibility in responding to the coronavirus (COVID-19) pandemic.