Capitol Benefits Group News & Updates June 2021
OSHA Issues COVID-19 Emergency Temporary Standard for Health Care
On June 10, 2021, the Occupational Safety and Health Administration (OSHA) announced its COVID-19 Emergency Temporary Standards (ETS). The ETS was developed to protect health care and health care support service workers from occupational exposure to COVID-19 in settings where people with COVID-19 are reasonably expected to be present. The ETS is expected to become effective as soon as it is published in the Federal Register.
Covered employers include hospitals, nursing homes, and assisted living facilities; emergency responders; home health care workers; and employees in ambulatory care settings where suspected or confirmed coronavirus patients are treated.
ETS Requirements
The ETS requires covered health care employers to develop and implement a COVID-19 plan to identify and control COVID-19 hazards in the workplace.
Covered employees must also implement other requirements to reduce the transmission of COVID-19 in the workplace. These requirements include, but are not limited to, health screenings, personal protective equipment (PPE), controls for aerosol-generating procedures, physical distancing, cleaning and disinfection protocols, ventilation standards, and employee training.
OSHA will update the standard, if necessary, to align with CDC guidelines and changes for the pandemic.
Employee Vaccination
The standard encourages vaccinations by requiring employers to provide reasonable time off and paid leave for employees to receive vaccinations and to recover from any vaccination side effects.
Respiratory Program
The ETS also encourages respirator use when they are used in lieu of required facemasks by including a mini respiratory program that applies to such use.
IRS Releases FAQs on ARP Tax Credits for Paid Sick and Family Leave
On June 11, 2021, the IRS released new FAQs about tax credits for eligible employers who voluntarily provide paid employee leave under the Families First Coronavirus Response Act (FFCRA). The FFCRA paid sick and family leave requirements themselves expired Dec. 31, 2020, but subsequent legislation-most recently the American Rescue Plan Act-extended and enhanced the tax credits available for employers that choose to provide FFCRA leave through Sept. 30, 2021.
There are 123 new FAQs, divided into 16 subtopics. They contain information on how employers may claim the tax credits, including how to file for and compute the applicable credit amounts, and how to receive advance payments for and refunds of the credits. The FAQs clarify the following issues, among others:
* Daily and aggregate wage limits do not include health plan expenses or the employer's share of Social Security and Medicaid taxes.
* Qualified leave wages do not include federal taxes on the wages.
* Details about the last day an employer may file for advance payment of the credit.
* Even if the employer did not initially pay the employee when the employee became eligible for qualified leave wages, the credit may still apply for wages paid for leave taken between April and September 2021.
* Employers must collect and maintain specific information from employees (and may require more than that specified) to substantiate eligibility for the credits. Records must be kept for six years.
The tax credits apply to employers with fewer than 500 employees, and they are refundable and advanceable. Eligible wages are subject to daily and total limits.
HHS Finalizes Remainder of the 2022 Notice of Benefit and Payment Parameters
On May 5, 2021, the Department of Health and Human Services (HHS) published a second Notice of Benefit and Payment Parameters (NBPP) for 2022 that finalized the remainder of the standards included in the proposed notice issued at the end of 2020. The first final 2022 NBPP was published on January 19, 2021.
This second NBPP describes additional benefit and payment parameters under the Affordable Care Act (ACA) that apply for the 2022 benefit year, including the following:
* The annual out-of-pocket maximum limitation will increase to $8,700 (self-only coverage) and $17,400 (family coverage) for 2022. This amount is $400 lower than was initially proposed.
* The required contribution percentage for catastrophic coverage eligibility will decrease from 8.27% for 2021 to 8.09% for 2022.
* An additional special enrollment period (SEP) for Exchange coverage to allow Exchange enrollees who lose premium tax credit eligibility to change to a new plan, and allow individuals who were unaware that an SEP triggering event occurred to select a new qualified health plan within 60 days.
The first 2022 NBPP finalized provisions including updated user fees for issuers offering plans through the Exchange, establishment of a new Exchange direct enrollment option, Exchange payment standards related to individual coverage HRAs (ICHRAs) or qualified small employer HRAs (QSEHRAs), and amended Section 1332 waiver procedures.
Draft Forms for 2021 ACA Reporting Released
2021 ACA Reporting is Due in Early 2022
The IRS has released draft 2021 versions of Forms 1094-C, 1095-C, 1094-B and 1095-B that employers will use in early 2022 to report under Internal Revenue Code Sections 6055 and 6056 for the 2021 calendar year. Draft instructions related to these forms for the 2021 calendar year have not yet been released.
No substantive changes were made to the draft forms for 2021 reporting. These forms are substantively identical to the final 2020 versions. However, certain changes may be made once these forms are finalized, or when draft or final instructions are released.
Employers should become familiar with these forms for reporting for the 2021 calendar year. However, these forms are draft versions only, and should not be filed with the IRS or relied upon for filing. In addition, employers should monitor future developments for the release of 2021 draft instructions for these forms.
The content herein is provided for general information purposes only, and does not constitute, legal, tax, or other advice or opinions on any matters. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy.
CMS Extends Exchange Special Enrollment Due to COVID-19
The Special Enrollment Period will Now be Available through Aug. 15, 2021, via HealthCare.gov
On March 23, 2021, the Centers for Medicare & Medicaid Services (CMS) announced that it is extending access to a special enrollment period (SEP) through Exchanges on the federal www.HealthCare.gov platform due to the coronavirus (COVID-19) pandemic. Originally available through May 15, 2021, the extended SEP provides three additional months for enrollment, allowing eligible individuals to enroll in Exchange coverage through Aug. 15, 2021.
Now through Aug. 15, 2021, this SEP is available through Exchanges using the www.HealthCare.gov platform to all Exchange-eligible consumers who are submitting a new application or updating an existing application. States using their own Exchange platforms are strongly encouraged to make a similar SEP available in their states. Consumers seeking to take advantage of this SEP can find out if they are eligible by visiting www.HealthCare.gov. Consumers will have 30 days after they submit their application to choose a plan.
As a result of the American Rescue Plan Act (ARPA), additional premium cost savings is available through www.HealthCare.gov starting April 1, 2021, that may lower premium costs or allow individuals to enroll in a higher-level plan at the same cost. Also, beginning in early July, consumers who are eligible for unemployment compensation for any week during 2021 may be eligible for additional cost savings through the Exchange.
This content herein is provided for general information purposes only and does not constitute legal, tax, or other advice or opinions on any matters. This information has been taken from sources that we believe to be reliable.