In this issue of our Burning Benefits News, we recap the current status of regulations and other agency guidance on healthcare reform, just to keep score for you. Developments are coming quickly, and the compliance dates are nearly upon us.

It’s “go time” for changes required by Healthcare Reform! Linked below is our latest Burning Benefits Newsletter which discusses the timing of initial Healthcare Reform changes and provides:

• A checklist of required actions,

• A summary of new regulations on preventive services and appeals processes, and

• Model notices.

As you will see, many actions must be taken before your fall open enrollments. Also, notices should be sent to participants by November 1.

The Patient Protection and Affordable Care Act has amended section 7 of the Fair Labor Standards Act by adding a new subparagraph which permits nursing mothers to take reasonable breaks to express breast milk for a nursing child.

The federal estate tax laws are currently unsettled. This may have implications for your estate planning documents. Click here to read the letter for more information. 

Contact Nancy Welber or Tony Hart to follow up.

Stevenson Keppelman Associates held a seminar on June 28, 2010 on Health Care Reform. In our seminar, we told you about the Early Retiree Reinsurance Program. The U.S. Department of Health & Human Services (“HHS”) is now accepting applications for this program.

Official Application Available on HHS Website
For the official application and other helpful information (see list below), visit the HHS website: http://www.hhs.gov/ociio/regulations/index.html#early_retiree.

• Regulation
• Official ERRP Program Application (New)
• Official ERRP Application Instructions (New)
• Frequently Asked Questions (Updated)
• Application Submission Dos and Don’ts (Updated)
• Fact Sheet
• Presentation

Program Summary
For those of you not familiar with the Early Retiree Reinsurance Program, it was established as part of the Affordable Care Act. The program reimburses plan sponsors of participating employment-based plans for a portion of the cost of health benefits for early retirees (prior to Medicare eligibility) and their spouses, surviving spouses, and dependents. Plan sponsors may be reimbursed for 80% of certain claims between $15,000 and $90,000 (as indexed) while funding lasts.

Race to the Finish Line?
Congress appropriated funding of $5 billion for this temporary program, which became effective June 1, 2010, and ends no later than January 1, 2014. But some observers doubt the money will last that long. Accordingly, there has been a mad rush to be one of the first sponsors to submit an application. Based on some new HHS FAQs, it looks like plan sponsors may have more time to file an application. According to the FAQs, claims will be processed in the order in which the claims are received (vs. in the order in which the applications are submitted). Don’t wait too long though to file your application. HHS has the authority to stop accepting new applications if it appears that the $5 billion in federal funding is insufficient as claims are paid out.

Please contact us if you have any questions regarding the retiree reinsurance program. We would be happy to assist you.

For those who would like to review content, or if you missed the webcasts, the phone presentation was recorded. Below is the information you need if you would like to listen to it again. If you have any questions, or problems accessing the recording, please contact Kristy Zelenka at kristy@skalaw.com.

The recording is available via replay for 90 days.

Replay Dial-in Access: 888-496-6260 or 480-629-9053

Participant Code: 11544869

Confirmation Number: 92561

The accompanied slides are available here.

As we previously advised, certain healthcare plans will be “grandfathered” from the requirements of the new healthcare law. On June 14, regulations were issued on this point. This latest issue of Burning Benefits News contains our overview.

You will likely have follow up needs to this. Please let us know if we may assist.

Click here to read the entire article.

The IRS is launching a 401(k) compliance initiative in the form of a 69-question Questionnaire. The questions are very detailed and designed to uncover compliance issues with 401(k) plans. Completion of the Questionnaire is not optional.

Click here to find out what you have in store if you receive the Questionnaire and what you may do even if you do not receive the Questionnaire this time around.

Click here to learn more about the Early Retiree Reinsurance Program as established by the Patient Protection and Affordable Care Act, as amended.