September 2013
Vol. 3 No. 7
In This Issue
NLRB Nominees Confirmed
Required Retirement Plan Annual Fee Disclosure Deadline
Healthcare Exchange Notice Deadline
Medicare Part D Notice Due
Out of Pocket Limits Under PPACA Delayed
Kaiser Family Foundation's 2013 Employer Health Benefits Survey
Same-Sex Spouse FMLA Rights
VEVRAA Rules Updated
Senate Confirms Five NLRB Nominees
The US Senate has confirmed five members to the National Labor Relations Board (NLRB) as part of a
deal to avoid Senate rule changes limiting the minority's right to filibuster executive branch nominations.
As part of the deal, President Obama withdrew the nominations of Sharon Block and Richard Griffin, who
were recess appointments to the Board, but whose appointments were ruled unconstitutional in federal
court. The Board members are:
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Mark Gaston Pearce, for the term expiring Aug. 27, 2018.
Kent Yoshiho Hirozawa for the term expiring Aug. 27, 2016.
Nancy Jean Schiffer for the term expiring Dec. 16, 2014.
Harry Johnson III for the term expiring Aug. 27, 2015.
Philip Andrew Miscimarra for the term expiring Dec. 16, 2017.
DOL Modifies Required Retirement Plan Annual Fee
Disclosure Deadline
The U.S. Department of Labor (DOL) announced in Field Assistance Bulletin 2013-02 that it is giving
retirement sponsors and administrators of participant-directed retirement plans temporary relief from
certain annual disclosure requirements. The participant-level fee disclosure rules that took effect in 2012
require plan administrators to "at least annually" provide plan participants and beneficiaries with detailed
investment related information about the plan's designated investment options using comparative charts.
Because the initial disclosure was required by August 30, 2012, "at least annually" would mean the next
deadline was August 30, 2013. Plan administrators and service providers expressed concerns about the
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timing requirement. In recognition of the concerns, the DOL said it will consider plan administrators as
having satisfied the "at least annually thereafter" requirement if they provide the 2013 comparative chart
within 18 months of when they distributed the prior comparative chart and then at least annually (within a
12-month period) thereafter.
Healthcare Exchange Notice Deadline Approaching
The deadline for employers to provide employees with written notice about the new health care
exchanges is October 1, 2013. Employers must provide workers with one of two versions of a notice
regarding healthcare exchanges as developed by the U.S. Department of Labor (see the June 2013
HCWP HR Newsletter). Starting October 1, the exchanges are scheduled to accept applications for
coverage beginning on January 1, 2014. The federal government has also launched a new Health Care
Changes website to provide employers with state-by-state information on their options and responsibilities
under the Affordable Care Act. The site connects organizations to information on tax credits and other
PPACA provisions from the Small Business Administration, the Department of Health and Human
Services and the Treasury Department. It includes a wizard tool that is tailored to a firm's size and
location.
Medicare Part D Notice Due October 15
The Medicare Modernization Act (MMA) requires companies whose health plans include prescription drug
coverage to notify Medicare eligible participants whether their prescription drug coverage is "creditable
coverage," meaning that the coverage is expected to pay on average as much as the standard Medicare
prescription drug coverage. There are two disclosure requirements: the first is to provide a written
disclosure notice to all Medicare eligible individuals who are covered under the employer's prescription
drug plan prior to October 15th each year. The second is to complete the Online Disclosure to CMS Form
to report the creditable coverage status of their prescription drug plan. The Disclosure should be
completed annually no later than 60 days from the beginning of a plan year. The federal Centers for
Medicare & Medicaid Services (CMS) requires that companies provide the notice before the annual
Medicare Part D election period which begins on October 15th for coverage beginning January 1st. The
CMS Creditable Coverage website provides text of the guidance and sample disclosure notices.
Implementation of Out Of Pocket Limits Under PPACA
Delayed Until 2015
On August 12, The New York Times published a story reporting on another Affordable Care Act
requirement being delayed until 2015. The PPACA capped total out-of-pocket medical costs at $6,350 for
insured individuals, and $12,700 for families. But the administration is delaying by one year those caps for
group health plans that use multiple service providers, such as plans having one administrator for medical
coverage and another for prescription drug benefits. The delay means that in 2014, plans that have
segregated arrangements will have those maximum amounts only on out-of-pocket medical costs. If a
group benefit plan already has a cap in place for separately administered out-of-pocket drug benefits,
then that plan's new maximum in 2014 for those benefits must not exceed $6,350 for individuals and
$12,700 for families. But if there is not already a cap in place for such separate benefits, then because of
the one year delay, there will be no limit on the out-pocket costs for those benefits through 2014. The
delay was revealed in a list of frequently asked questions (FAQ) posted by the Labor Department in
February.
Kaiser Family Foundation Releases 2013 Employer Health
Benefits Survey
Annual premiums for employer-sponsored family health coverage in the U.S. reached $16,351 in 2013,
with workers paying an average of $4,565 toward the cost of their coverage, according to the Kaiser
Family Foundation/Health Research & Educational Trust's 2013 Employer Health Benefits Survey.
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Covered workers generally face similar premium contributions and cost-sharing requirements in 2013 as
in 2012. In 2013, the average annual premiums for employer-sponsored health insurance are $5,884 for
single coverage and, as noted above, $16,351 for family coverage. The single premium is 5% higher and
the family premium is 4% higher than the 2012 average premiums. Over the last 10 years, the average
premium for family coverage has increased 80%.
Same-Sex Spouse FMLA Rights Clarified by DOL
The Department of Labor recently revised guidance on its website that clarifies that same-sex spouses
may be eligible for Family and Medical Leave Act (FMLA) leave to care for a seriously ill spouse or for
activities related to a spouse's military deployment. Fact Sheet #28F: Qualifying Reasons for Leave under
the Family and Medical Leave Act now defines spouse as "husband or wife as defined or recognized
under state law for purposes of marriage in the state where the employee resides, including 'common law'
marriage and same-sex marriage." On June 26, 2013, the U.S. Supreme Court ruled on the
constitutionality of the Defense of Marriage Act (DOMA), striking down the definition of spouse as a
"person of the opposite sex who is a husband or wife." This decision appeared to make FMLA leave
available to same-sex couples. The revision of Fact Sheet #28F clarifies that FMLA leave is now available
to same-sex spouses who reside in a state where same-sex marriage is legally recognized. Thus, lawfully
married same-sex couples who live in a state that recognizes same-sex marriage will be entitled to up to
12 weeks of leave in a 12-month period to care for a seriously ill spouse or for activities that arise in
connection with a military spouses' deployment, and up to 26 weeks of caregiver leave for a military
spouse who is seriously injured or ill, if they are otherwise eligible for FMLA leave. Employers are not
required to make FMLA leave available to same-sex spouses who reside in a state that does not
recognize same-sex marriage. According to the National Conference of State Legislatures, while
Pennsylvania does not recognize same sex marriages, it does recognize common law marriages entered
into on or before January 1, 2005.
OFCCP Updates VEVRAA Rules
The Office of Federal Contract Compliance Programs (OFCCP) has published updated regulations
covering the employment of veterans and individuals with disabilities under the Vietnam Era Veterans'
Readjustment Assistance Act (VEVRAA). According to the Department of Labor, the final rule strengthens
the affirmative action provisions of the regulations to aid contractors in their efforts to recruit and hire and
to improve job opportunities for protected veterans. The new rules address several matters including the
establishment of annual hiring benchmarks, required data collection and analysis, equal opportunity
clause language, and OFCCP access to employer records.
Hospital Council of Western Pennsylvania is a strategic partner with health care providers
and affiliated organizations, enabling them to realize their mission while maintaining their status as
economically viable entities.
Visit: http://www.hcwp.org
Call: 1-800-704-8434
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