SIMA Login Center
SIMA
Copyright 2018 SIMA Financial Group.
All Rights Reserved.

IRS Releases 2019 ACA Affordability Threshold

The IRS has released a Revenue Procedure, which increases the affordability threshold for ACA (“Affordable Care Act”) Employer Mandate Purposes (“Pay or Play”) to 9.86% for plan years beginning in 2019. For reference purposes: 2015 Percentage: 9.56%  2016 Percentage: 9.66% 2017 Percentage: 9.69% 2018 Percentage: 9.56% 2019 Percentage: 9.86% The Pay or Play rules only apply to employers considered Applicable Large Employers” or “ALEs”.  In general, ALEs are employers that employee an average of at least 50 full time plus full time equivalent employees on business days in during the preceding year.  Under the ACA’s Pay or Play rules, ALEs must offer affordable and adequate coverage to...

Continue reading

Creditable Coverage Disclosure Reminder

All group health plans that provide prescription drug coverage to Medicare Part D eligible individuals (whether actively working, retired, or disabled) are required to notify CMS whether or not the coverage provided is creditable. This disclosure must be filed with the Department of Health and Human Services within 60 days of the start of the plan year, and it is required whether the coverage is primary or secondary to Medicare. Employers must file their Disclosure Notice through the CMS website Instructions and guidance on completing the Notice are available here. NOTE: If you are offering an actual Part D Plan, you are exempt...

Continue reading

IRS Announces HSA Limits for 2019

On May 10, 2018, the IRS released Revenue Procedure 2018-30 to announce the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2019. These limits include: The maximum HSA contribution limit; The minimum deductible amount for HDHPs; and The maximum out-of-pocket expense limit for HDHPs. These limits vary based on whether an individual has self-only or family coverage under an HDHP. The IRS limits for HSA contributions will increase for 2019. The HDHP maximum out-of-pocket limits will also increase for 2019. The HSA contribution limits will increase effective Jan. 1, 2019, while the HDHP limits will increase effective for plan...

Continue reading

Non Discrimination & Classing Rules for Health Plans: An Employer’s Guide

Group health plans and tax-favored accounts—including health savings accounts (HSAs), health flexible spending arrangements (health FSAs), and health reimbursement arrangements (HRAs)— are subject to numerous nondiscrimination provisions under federal law. As a result, employers that wish to adopt arrangements which exclude certain classes of employees from group health plan coverage or offer different benefits or contributions to different classes of employees (e.g., managerial vs. non-managerial) must analyze these arrangements under several laws to determine whether such treatment is permissible. The following provides a summary of key nondiscrimination requirements that may apply to group health plans and tax-favored accounts under federal...

Continue reading

EEOC Pushes Back 2017 EEO-1 Report Deadline to June 1

Certain Employers Must Submit Report The U.S. Equal Employment Opportunity Commission (EEOC) has pushed back the deadline for required entities to submit their 2017 EEO-1 report to June 1, 2018. Previously, the deadline was March 31, 2018. As a reminder, private employers with 100 or more employees and federal government contractors or first-tier subcontractors with 50 or more employees and a contract/subcontract of $50,000 or more are generally required to file the EEO-1 report annually. EEOC's EEO-1 website contains additional information on the EEO-1 report filing requirement.    ...

Continue reading

How Does Your Defined Contribution Plan Compare? A Look at Automatic Contribution Escalation

Four-fifths of non-government plans that have automatic enrollment also offer automatic contribution escalation (80%).  After rising sharply from 2015 to 2016, the prevalence of automatic contribution escalation among non-government plans has remained at about seven in ten for the past two years.  The number of plans with automatic contribution escalation that use an opt-out approach increased markedly (70.8%), compared to previous years: 2016 (59.5%), 2015 (60.7%), and 2014 (52.8%). Only 5% of non-government plans without automatic contribution escalation are very likely to adopt this feature in 2018. The top reason for not offering automatic contribution escalation among non-government plans is that...

Continue reading

Final Regulations – 2019 Notice of Benefit and Payment Parameters

On April 9, 2018, the Department of Health and Human Services (HHS) issued final regulations and related guidance on Affordable Care Act (ACA) provisions including Essential Health Benefits (EHBs), out-of-pocket (OOP) maximums, and Marketplace updates and reforms. These regulations, generally effective for plans and plan years beginning on and after Jan. 1, 2019, largely mirror the proposed regulations issued Oct. 27, 2017. The final rule affords greater flexibility to states for determining EHBs, reduces some regulatory requirements in the individual and small group markets and provides annual benefit provision updates. Additional guidance expands the individual mandate hardship exemptions available for 2018...

Continue reading

$6,900 Re-Established as 2018 HSA Contribution Limit for Certain Individuals

The Internal Revenue Service (IRS) has re-established $6,900 as the 2018 health savings account (HSA) contribution limit for individuals with family coverage under a high deductible health plan (HDHP). This limit was previously announced as $6,900 in May 2017, but was revised to $6,850 in March 2018 due to an inflation adjustment provision in the Tax Cuts and Jobs Act. The 2018 health savings account (HSA) contribution limit for individuals with self-only coverage under a HDHP remains unchanged at $3,450. Click here to read the IRS announcement.   ...

Continue reading

Small Businesses May Be Able to Keep Existing Health Coverage Through 2019

A previously extended transitional policy that permits health insurance issuers to continue group coverage that would otherwise be terminated or cancelled due to the Affordable Care Act (ACA) has been further extended to policy years beginning on or before October 1, 2019, provided that all policies end by December 31, 2019. Health insurance issuers that renew coverage under the extended transitional policy are required to provide standard notices to affected small businesses for each policy year. Policies subject to the transitional relief will not be considered to be out of compliance with key ACA provisions, including: The requirement to cover a core...

Continue reading