Health care reform - get involved

Beginning January 1, 2013, Health Care FSA contributions will be limited to $2,500 per calendar year per employee as a result of the new health care reform law. An important part of the law to take note of is that this change applies to the calendar year and not the plan year. This could cause a bit of a dilemma for plan years that do not coincide with calendar years.

Consider a Health Care FSA plan year that runs from July 1 through June 30 and imposes a $5,000 maximum. How is that maximum affected by the $2,500 limit imposed in 2013? Thus far, the IRS has yet to address this issue or deliver a concrete course of action. Unless and until it does, we presume one of three possible options would comply with the intent of the new law.

Option One: The most conservative option would be to simply impose the $2,500 limit before 2013. In the above example, for instance, the employer would simply reduce the $5,000 limit to $2,500 beginning July 1, 2012.

Option Two: Another cautious option would be to declare a so-called "short plan year" for the balance of 2012 and start things fresh on January 1, 2013 with a plan year that follows the calendar year. In the above example, for instance, participants could elect up to $5,000 for the July 1- December 31 short plan year. Of course, this option may not be acceptable to plan sponsors who do not want to administer a plan year that follows the calendar year.

Option Three: This option is somewhat more aggressive than the above two, but may be something some plan sponsors want to consider: Employees would "front-load" some of their salary reductions in 2012 for use during the 2013 part of the plan year

Also remember beginning Jan. 1, 2011, over-the-counter (OTC) medications are no longer eligible for reimbursement from a Flexible Spending Account (FSA), Health Savings Account (HSA), or Health Reimbursement Account (HRA) unless obtained with a prescription.

Also in 2011, the excise tax for non-qualified HSA withdrawals doubled to 20%.

http://www.uhc.com/live/uhc_com/Assets/Documents/hsa-hra-fsa-employer.html

https://www.youtube.com/watch?v=AnZyMMuGzu8

Washington State currently has a program called Basic Health. This program covers individuals who are not covered by Medicaid and are below 200% of poverty level income. This program provides subsidies for Washington State residents and has a long waiting list. The PPACA requires the same type of program for individuals if they purchase insurance through the exchange.

Last month, Governor Chris Gregoire, in consultation with the legislative committee chairs, placed the project on hold, eliminating any chance for 2014. This decision was made in consultation with Senator Keiser and Rep. Cody. It means that Washington State will likely not be able to offer the BHPO in this state on January 1, 2014. While very disappointing, the decision frees up staff resources to commit to other pressing needs, particularly for the Exchange. It also brings some certainty to the required work being done by the Office of the Insurance Commissioner regarding reinsurance – which was struggling with what to assume regarding the BHPO.

http://washingtonstatewire.com/blog/federal-basic-health-plan-option-placed-on-hold-in-washington-state/

www.dol.gov
EEO – equal employment opportunity

The U.S. Equal Employment Opportunity Commission (EEOC) is an independent federal agency that has EEO responsibilities for employees of most private employers, state and local governments, educational institutions, employment agencies, and labor organizations.

http://www.eeoc.gov/employers/index.cfm

Employers

The U.S. Equal Employment Opportunity Commission enforces Federal laws prohibiting employment discrimination. These laws protect employees and job applicants against employment discrimination when it involves:

• Unfair treatment because of race, color, religion, sex (including pregnancy), national origin, age (40 or older), disability or genetic information.

• Harassment by managers, co-workers, or others in the workplace, because of race, color, religion, sex (including pregnancy), national origin, age (40 or older), disability or genetic information.

• Denial of a reasonable workplace accommodation that the employee needs because of religious beliefs or disability.

• Retaliation because the employee complained about job discrimination, or assisted with a job discrimination investigation or lawsuit.

Not all employers are covered by the laws we enforce, and not all employees are protected. This can vary depending on the type of employer, the number of employees it has, and the type of discrimination alleged.

An employee or job applicant who believes that he or she has been discriminated against at work can file a "Charge of Discrimination." All of the laws enforced by EEOC, except for the Equal Pay Act, require employees and applicants to file a Charge of Discrimination with us before they can file a job discrimination lawsuit against their employer. Also, there are strict time limits for filing a charge.

The fact that the EEOC has taken a charge does not mean that the government is accusing anyone of discrimination. The charging party has alleged that an employer has discriminated against him or her and it is the EEOC's job to investigate the matter to determine whether there is reasonable cause to believe that discrimination has occurred.

Other Requirements

The laws enforced by EEOC require employers to keep certain records, regardless of whether a charge has been filed against them. When a charge has been filed, employers have additional recordkeeping obligations. The EEOC also collects workforce data from some employers, regardless of whether a charge has been filed against the company.

Employers are required to post notices describing the Federal laws prohibiting job discrimination based on race, color, religion, sex (including pregnancy), national origin, age (40 or older), disability or genetic information.

Small Businesses

While the information in this section of our website applies to all employers, it has been specifically designed for small businesses which may not have a human resources department or a specialized EEO staff. We realize that the information provided here may not answer all of the sophisticated legal issues that can arise in employment discrimination cases. Employers who have questions about the laws enforced by EEOC or about compliance with those laws in specific workplace situations may contact one of our small business liaisons for assistance.