Universal Benefit Plans Blog

Flexible Spending Accounts and salad dressing are very unalike yet both perform the same function: they make things more palatable.

I thought of this immediately after a lunch meeting with the CEO, CFO and HR Director of a mid-size manufacturing firm. I had prepared a lengthy compilation of proposed benefit plan changes but before I dove into it, we ordered our meals. I ordered a salad with my meal and asked for blue cheese dressing on the side. However, when the waitress brought it over there was no dressing.

Effective for plan years beginning on or after September 23, 2010, employers must extend health plan coverage to all employees’ dependent children up to age 26. For most employers, this provision won’t take effect until January 2011 or later unless they decide to phase it in early, but, few employers are.

Data from Hewitt Associates reveals that 1 million employers (or 19% nationwide) plan to extend health insurance coverage to employees’ adult children before they’re required to do so next year. Of the 19%, 10 percent plan on extending coverage to all eligible dependents (i.e. those who are unmarried and have not yet reached their 26^th birthday). The remaining 9% simply plan on extending coverage to graduating students.

The recent passage of the Patient Protection and Affordable Care Act (PPACA) provided employers quite a few items of concern. But what PPACA provisions worry them the most?

A recent Mercer survey zoned in on a few:

When the Senate adjourned early last Friday for its Memorial Day break, they left the ARRA Act COBRA subsidies untouched. As a result, Federal COBRA premium subsidies lapsed effective June 1. Additionally, individuals involuntarily terminated after May 31 will not be eligible for the subsidy, or at least temporarily they won’t be. Here’s why.

We’ve received several questions lately on PPACA provisions that impact FSA plans, specifically the upcoming regulations on reimbursements for over-the-counter drugs. These regulations take effect January 1, 2011 and many employers (especially those that aren’t on a calendar year plan) are wondering if, when and how these provisions will affect them.

In this blog, we’ll address many of these employer questions by tackling two common ones: whether or not non-prescribed OTC are still eligible for reimbursement and whether or not employees can change their FSA amount in light of OTC drug reimbursement changes.

Are you a small employer or nonprofit? Would you like to take advantage of a tax break for offering health insurance? If you answered yes to both of these then read on.

The IRS has put together several guidelines for small commercial employers and nonprofits that want to take advantage of the health insurance tax break. The guidelines provided in IRS Notice 2010-44 include examples that will help you determine whether your business is eligible for the tax credit and how much of it you can claim.

We all know that the Patient Protection and Affordable Care Act (aka PPCA or “health reform legislation”) will bring about some major changes in the health care arena. But what about your dental plan?

Although the legislation won’t have as profound an effect on dental benefits as it will on medical benefits (and there doesn’t appear to be an immediate impact on dental coverage), employers still should take note of one vital thing. The law will affect their dental plans.

Many employers turn to wellness as a proactive long-term cost saving measure. Wellness programs do have many wonderful virtues (healthier employees, reduced claim costs across the board, etc.) and are a great investment for forward thinking organizations. However, they don’t come without choppy legal seas to navigate.

So, how do employers chart a successful course for their wellness programs and avoid the snares of potential legal traps?

Most, if not all of us, have heard of the health reform legislation’s pay-or-play requirement for employers. However, according to a recent Mercer analysis, more than a third of employers will likely need to do both. Here’s why.

Disability insurance is a much needed and often overlooked employee benefit. Whether an individual is disabled for 90 days or 5 years they all face one common occurrence: the sudden loss of a paycheck. Without a steady income, how long would you be able to pay your mortgage or rent, pay down your credit card’s debt or even a child’s school tuition? If you’re like most people, not very long.

A recent LIFE Foundation survey revealed 50% of working Americans couldn’t make it for a month following a disabling illness or injury before financial hardship set in. One in four Americans couldn’t even make it a week.