News & Updates
HR Training
Keeping up with compliance issues related to COVID-19 can feel overwhelming for employers! You are invited to join our legal content attorney partners from Zywave on April 14th at 12PM CST for a live webinar as they explain the latest information from the DOL, EEOC, and OSHA.
In this webinar, we'll discuss:
* Updated information on employer requirements related to the COVID-19 pandemic
* Updates on new COVID-19 relief efforts
If you’re interested in attending this April session, please get in-touch with your CBG represenative so that we can get you registered!
Also, in case you missed it, you can access the recording link for the March 2021 HR Training on Temporary Special Rules for Health and Dependent Care FSAs - Click Here. This features the discussion on the temporary changes to the federal tax law that provide flexibility for employees’ health and dependent care FSAs.
Issues Guidance on Employee Retention Credit for 2020
On March 1, 2021, the Internal Revenue Service (IRS) issued Notice 2021-20 to provide guidance for employers claiming the 2020 employer retention tax credit. This tax credit was created by the Coronavirus Aid, Relief and Economic Security Act (CARES Act) to encourage employers to keep employees on their payroll, despite experiencing economic hardships related to COVID-19.
Employers can claim the tax credit if they:
* Paid qualified wages between March 12, 2020, and Jan. 1, 2021; and
* Experienced a full or partial suspension of their operations or a significant decline in gross receipts.
The Taxpayer Certainty and Disaster Tax Relief Act of 2020 allow eligible employers that received a Paycheck Protection Program (PPP) loan to claim the employee retention credit. The PPP was established to help businesses keep their workforces employed during the COVID-19 crisis.
Notice 2021-20 explains when and how employers that received a PPP loan can claim the employee retention credit for 2020. However, employers will need to choose between receiving PPP loan forgiveness or claiming the employee retention credit.
The notice clarifies employer eligibility and the employee retention credit FAQs. The notice also defines important terms, such as "qualified wages," and describes retroactive changes that apply to 2020. This notice includes only rules for 2020. The IRS announced that additional guidance will be published soon for the 2021 changes.
Biden Issues Executive Order to Strengthen the ACA
On Jan. 28, 2021, President Joe Biden issued an executive order that is intended to strengthen the Affordable Care Act (ACA) and Medicaid. The executive order directs the Department of Health and Human Services (HHS) to consider establishing a special enrollment period through Federally Facilitated Exchanges due to the coronavirus (COVID-19) pandemic.
The order also directs HHS, the Treasury, and the Department of Labor (DOL) to review all existing regulations and guidance, and other agency actions to determine whether they are inconsistent with the policy of the executive order, and consider whether to suspend, revisit or rescind those actions. Finally, the executive order revokes two prior executive orders issued by the Trump administration.
An executive order is a broad policy directive that directs federal agencies to consider new regulations or guidance to implement the order's policies. The order itself does not make any changes to existing regulations. As a result, the executive order's specific impact will remain largely unclear until agencies can issue further guidance.
CMS Provides Exchange Special Enrollment
Due to COVID-19
On Jan. 28, 2021, the Centers for Medicare & Medicaid Services (CMS) announced a new special enrollment period (SEP) due to the coronavirus (COVID-19) pandemic through Exchanges using the federal www.HealthCare.gov platform. States using their own Exchange platforms are strongly encouraged to make a similar SEP available in their states.
Starting on Feb. 15, 2021, and continuing through Aug. 15, 2021, Exchanges using the www.HealthCare.gov platform will make a SEP available to all Exchange-eligible consumers who are submitting a new application or updating an existing application. Beginning on Feb. 15, 2021, 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.
Consumers do not need to provide any documentation of a qualifying event (such as loss of a job or birth of a child), which is typically required for SEP eligibility.
Small Businesses May Be Able to Keep
Existing Non-ACA Compliant Health Plans Through 2022
On Jan. 19, 2021, the Department of Health and Human Services (HHS) extended an existing transition policy for certain health plans that do not comply with the Affordable Care Act (ACA) for an additional year, to policy years beginning on or before Oct. 1, 2022. Any plans that are renewed under this extended transition policy must comply with the specified requirements by Jan. 1, 2023.
In states that allow it, coverage subject to the non-enforcement policy will not be considered to be out of compliance with key ACA market reform requirements, including:
* The requirement to cover a core package of items and services known as essential health benefits;
* The requirement that any variations in premiums be limited with regard to a particular plan or coverage to age, tobacco use, family size, and geography;
* The requirements regarding guaranteed availability and renewability of coverage; and
* The requirements relating to coverage for individuals participating in approved clinical trials.
Plans renewed under this transition policy are often called "grandmothered" plans. Originally announced in 2013, the transition policy has already been extended several times.
Stimulus Bill With Ban on Surprise Medical Bills
Signed Into Law
On Dec. 27, 2020, former President Donald Trump signed the Consolidated Appropriations Act of 2021 into law, a $900 billion stimulus bill that includes emergency economic relief, government funding and tax cuts. The bill also includes the No Surprises Act, a ban on surprise medical bills, which will take effect beginning in 2022.
Surprise medical bills occur when patients unexpectedly receive care from out-of-network health care providers. For example, a patient may go to an in-network hospital for treatment, such as surgery or emergency care, but an out-of-network doctor may be involved in the patient's care.
Patients often cannot determine the network status of these providers, such as emergency room doctors or anesthesiologists, in order to avoid the additional charges. In many cases, the patient is not involved in the choice of the provider at all.
This newsletter 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.