he Department of Health and Human Services recently published its Annual Notice of Benefit and Payment Parameters for 2022. For purposes of employer-sponsored health plans, the final rule includes caps on out-of-pocket dollar limits and a policy to codify that individuals with COBRA coverage may qualify for a special enrollment period to enroll in individual […]

The IRS released Notice 2021-26 to address taxation of Dependent Care Assistance Programs (“DCAPs”) as it relates to the relief afforded under Section 214 of the Consolidated Appropriations Act, 2021 (“CAA”) and the increased DCAP limit for calendar year 2021 under the American Rescue Plan Act of 2021 (“ARPA”). Briefly, the guidance confirms that: With […]

As previously reported, the Consolidated Appropriations Act, 2021 (“CAA”) amends the Mental Health Parity and Addiction Equity Act of 2008 “MHPAEA”) to require group health plans and health insurers to conduct a comparative analysis of non-quantitative treatment limitations (“NQTLs”) imposed on mental health/substance use disorder (“MH/SUD”) benefits as compared to medical and surgical benefits. NQTLs […]

Medicare has increased and simplified its payment rate for administration of the COVID-19 vaccine to $40 per dose. This change may impact group health plans with respect to their payment rate to providers. Background Non-grandfathered group health plans are required to cover, without cost sharing, the COVID-19 vaccine. This obligation extended to coverage associated with […]

On April 7, 2021, the Department of Labor (“DOL”) issued FAQs regarding implementation of the 2021 COBRA premium assistance (or “COBRA subsidy”). The 2021 COBRA subsidy was included as part of the American Rescue Plan Act (“ARP”). Background The COBRA subsidy is available to assistance eligible individuals (“AEIs”) who are COBRA qualified beneficiaries (“QBs”) because […]

On March 26, 2021, the IRS issued IRS Announcement 2021-7, which clarifies that amounts paid for certain personal protective equipment (“COVID-19 PPE”) used to prevent the spread of COVID-19, including masks, hand sanitizer and sanitizing wipes can be treated as amounts paid for medical care under § 213(d) of the Internal Revenue Code. Accordingly, because […]

Along with the COBRA subsidy discussed in the alert issued March 11, 2021, the American Rescue Plan Act of 2021 (“ARPA” or the “Act”) provides the following additional relief: For calendar year 2021 only, an increase in the amount of pre-tax salary reduction election for a dependent care assistance plan (“DCAP” or “dependent care FSA”) […]

Section 214 of the Consolidated Appropriations Act, 2021 (“CAA”) included optional and temporary relief for health flexible spending accounts (“health FSAs”) and dependent care assistance programs (“DCAPs”) offered in a Section 125 cafeteria plan (“cafeteria plan”). On February 18, 2021, the Internal Revenue Service (“IRS”) issued Notice 2021-15 providing guidance addressing these optional plan changes. […]

The American Rescue Plan Act of 2021 was signed into law on March 11, 2021. The Act includes a 100% COBRA subsidy available to certain COBRA qualified beneficiaries who lose group health plan coverage as the result of an involuntary termination or reduction in hours. Congress passed the American Rescue Plan Act of 2021 (“the […]

On February 26, 2021, the Departments of Labor, Health and Human Services, and the Treasury (together, the “Departments”) issued FAQ 44 addressing health coverage issues related to COVID-19. Briefly, the new FAQs focus on diagnostic testing and coverage for testing and clarify previous guidance in FAQs. Background Section 6001 of the FFCRA requires group health […]