Congress Giveth and They Taketh Away — Recent Health Plan Changes
Nancy K. Campbell • January 22, 2020
In enacting the Further Consolidated Appropriations Act, 2020, (the “Act”), Congress, among other changes, enacted the following key changes affecting employer group health plans:
- Repeal of the Cadillac Tax : Most notably, and a huge relief to most employers, Congress repealed the Cadillac tax. The Affordable Care Act (“ACA”) added a requirement requiring employers to pay a 40% excise tax on the value of “rich” health plans (i.e., those that exceed $10,200 for an individual and $27,500 for a family, indexed for inflation). The excise tax was originally scheduled to take effect for taxable years beginning after 2017, but it was delayed two years by subsequent legislation. On January 22, 2018, legislation again delayed the excise tax for another two years until 2022. Rather than kicking the can down the road a third time, Congress finally repealed the Cadillac tax.
- 10-Year Extension of PCORI Fees : In less welcome news, Congress reinstated PCORI fees for an additional ten years. As reported in our October 2019 newsletter, “ 2019 End of Year Plan Sponsor “To Do” List (Part 1) Health & Welfare ,” health insurance issuers and sponsors of self-insured health plans were required to report and pay PCORI fees for plan and policy years ending before October 1, 2019. Many calendar year plan sponsors thought they had paid their final PCORI fee in 2019, which were due July 31, 2019. Some non-calendar year plans may still owe a PCORI fee for the 2019 plan year. The Act reinstates PCORI fees for ten years, for plan and policy years ending before October 1, 2029. The amount due per covered life will continue to be subject to annual adjustment. Plans will need to budget appropriately for this additional expense.
Employee burnout has become an epidemic in today’s modern workplace. So much so that the World Health Organization (WHO) officially recognizes it as an “occupational phenomenon.”1
While many used to consider mounting workplace stress an individual employee problem, these days, it’s become an employer’s responsibility to prevent burnout before it hurts productivity and business performance—not to mention your employees’ physical and mental health.
Luckily, you can prevent burnout from affecting your workforce in several ways. This article will explore the causes and signs of employee burnout and the steps you can take to create a positive work environment where employees feel safe from toxic stress levels.
If you're a small business owner, you may have heard of the acronym PCORI and the fees that come with it. But what is PCORI, and how does it apply to your organization?
Under the Affordable Care Act (ACA), sponsors of self-insured health plans must pay a fee to fund the federal Patient-Centered Outcomes Research Institute (PCORI). PCORI is an independent organization the ACA created to conduct research to help healthcare consumers make better decisions for their specific needs and outcomes. It also performs research related to clinical effectiveness.
Employers offering a self-insured medical reimbursement health plan, such as a health reimbursement arrangement (HRA), must pay this fee by July 31 each year via Form 7201. This fee was initially set to expire in 2019, but Congress extended it through September 30, 20292, due to the Further Consolidated Appropriations Act of 20203.
