J&D Benefits Perspective

Swine Flu – Resources for Employers

This featured article was originally published on April 30, 2009.

A new concern for employers is the recent news of a swine flu outbreak that started in Mexico and is now spreading in the United States and other countries. Confirmed cases of swine flu have been reported in California and 10 other states, and the US government is warning that a pandemic (global flu outbreak) is imminent. The U.S. Department of Health and Human Services (HHS) defines a pandemic on their Pandemic Flu website: Click Here

Employers should be taking action now to assess risk and implement an action plan. An abundance of information is available on several government websites. First, the HHS Pandemic Flu Website is “One-stop access to U.S. Government swine, avian and pandemic flu information.”: Click Here. Within the site, you will find State and Local Government Planning & Response Activities and Workplace Planning, including checklists, letters and guidance for employers and employees.

The Centers for Disease Control (CDC) Swine Flu Website is also an excellent resource, starting with their Swine Flu Q&A. Also on the site are confirmed cases tracked by state which are updated regularly. Companies should be aware of areas where outbreaks have occurred, and adjust work travel as necessary.

Both the HHS Pandemic Flu Website and the CDC Swine Flu Website allow you to sign up for e-mail alerts so that you can be advised as new information is available.

Finally, The U.S. Department of Labor Occupational Safety & Health Administration (OSHA) offers an online handbook (also available in PDF format): “Guidance on Preparing Workplaces for an Influenza Pandemic”.

Please contact your Johnson & Dugan team if you have any questions.

2010 Indexed Figures for Qualified Retirement Plans

Qualified Retirement Plan dollar limits will not change in 2010. Below is a chart of the contributions limits for 2009 and 2010.

LIMITS	2009	2010
401(k) Deferral Contribution Limit (Calendar Year)	$16,500	$16,500
401(k) Catch-up Contribution Limit (over age 50)	$5,500	$5,500
Annual Contribution Limit Sec. 415 (Defined Contribution Plans)	$49,000	$49,000
Plan Compensation Limit	$245,000	$245,000
Social Security Wage Base	$106,800	$106,800

2010 HSA and HDHP Limits

Contribution limits for Health Savings Accounts (HSAs) and deductible and out-of-pocket expense limits for HSA-qualified High Deductible Health Plans (HDHPs) will change effective January 1, 2010.

Annual Dollar Limit	2009	2010
Maximum HSA Contribution - Individual	$3,000	$3,050
Maximum HSA Contribution - Family	$5,950	$6,150
Maximum HDHP Deductible - Individual	$1,150	$1,200
Maximum HDHP Deductible - Family	$2,300	$2,400
Maximum HDHP Out-of-Pocket Expense - Individual	$5,800	$5,950
Maximum HDHP Out-of-Pocket Expense - Family	$11,600	$11,900

Contact your Johnson & Dugan Account Executive for details about HSA plans. For additional information about Health Savings Accounts, including answers to frequently asked questions, related IRS forms and publications, technical guidance, and links to other helpful web sites, see the Treasury Department website: http://www.treas.gov/offices/public-affairs/hsa/

IRS Section 79 – Imputed Income

For Group-Term Life Insurance and Domestic Partner Benefits

Jody Lee, Compliance Manager, Johnson & Dugan

The first $50,000 of Group-Term Life Insurance is excluded from gross income pursuant to Section 79 of the IRS Code. Any Group-Term Life Insurance coverage in excess of that amount is taxed as imputed income under Table I of the section 79 regulations. The first Table I was published in 1966 and has been subsequently revised in 1983, 1988 and 1999.

Below is the current Table I rate schedule.

UBA Survey: CDHPs Beat HMOs in Popularity

Consumer-driven health plans (CDHPs) in the U.S. have surpassed HMO plans in covered employees, according to preliminary results released by United Benefit Advisors (UBA) from its 2009 UBA Health Plan Survey, the nation's largest health plan benchmarking survey, with 17,655 plans from 12,316 employers reporting. CDHPs grew at a rate of 33.9 percent this past year and now cover more employees (15.4 percent) than HMO plans (13.6 percent), according to Bill Stafford, UBA vice president, member services. The Northeast region of the country had the largest concentration of CDHPs (23 percent), followed by the North Central region (20.1 percent). The average cost increase for all CDHPs at 6.3 percent was slightly lower than that of the average of all plan types, which increased 7.3 percent this year.

Open Enrollment – Answers to Common Employee Questions

Kathleen Dugan, Chief Operating Officer, Johnson & Dugan
Jody Lee, Compliance Manager, Johnson & Dugan

With the end of the year coming quickly, many companies are starting to prepare for Open Enrollment. Invariably, there are employee questions that come up, so we have prepared a list of the most common to assist you during the busy season.

My spouse’s company benefit plan holds open enrollment in October, and our plan has open enrollment in December. Can he drop his plan in October and join our plan, even though it isn’t our company open enrollment yet?

I-9 Employment Eligibility Verification Form - August Revision

The latest edition of the Form I-9 was issued on August 7, 2009. Revisions simply extended the expiration date of the document from June 30, 2009 to August 31, 2012 and updated the revision date to 8/7/09. Note: the 2/2/09 revision form is also acceptable.

Important instructions from the U.S. Citizenship and Immigration Services (UCSIC), "Do not file Form I-9 with U.S. Immigrations and Customs Enforcement (ICE) or USCIS. Form I-9 must be kept by the employer either for three years after the date of hire or for one year after employment is terminated, whichever is later. The form must be available for inspection by authorized U.S. Government officials (e.g., Department of Homeland Security, Department of Labor, Office of Special Counsel)."

To download the new form, Click Here.

Contact your Johnson & Dugan team if you have any questions.

Health Care Reform Runs into Tougher Opposition as Specifics Emerge

As the details of health care reform legislation solidify, a hotly contested topic –- taxes on employer-sponsored benefits -– has come under fire, even from within the Democratic Party.

Several Democratic senators recently spoke out against a tax on employee health insurance benefits that would help foot the bill for health care reform, which has been estimated to reach $1 trillion over 10 years.

Sen. Max Baucus (D-Mont.), chairman of the Senate Finance Committee, is pushing the idea of a benefits tax as a way to pay for reform while controlling future costs. Some Republicans have warmed to the idea as well, but it has been strongly opposed by labor unions.

"It's clearly a very difficult issue. ... You go to the public to ask them what they think and they don't like it," said Sen. Kent Conrad (D-N.D.). Many Democratic senators expressed concern that such a measure would cost more votes from their own party than they would gain from the Republicans, according to a report from the Associated Press.

Employment Eligibility Form (I-9)

USCIS Press Release issued June 30, 2009:

USCIS Issues Guidance on Employment Eligibility Verification Form

WASHINGTON—U.S. Citizenship and Immigration Services (USCIS) announced today that the Employment Eligibility Verification form I-9 (Rev. 02/02/09) currently on the USCIS Web site will continue to be valid for use beyond June 30, 2009. 

USCIS has requested that the Office of Management and Budget (OMB) approve the continued use of the current version of Form I-9. While this request is pending, the Form I-9 (Rev. 02/02/09) will not expire.

USCIS will update Form I-9 when the extension is approved.   Employers will be able to use either the Form I-9 with the new revision date or the Form I-9 with the 02/02/09 revision date at the bottom of the form. 

For more information on USCIS and its programs, visit www.uscis.gov.

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Johnson & Dugan will send out a Compliance Alert when the approval from the OMB has been announced. Contact your Johnson & Dugan team with any questions.

Latest CMS Guidance on Mandatory MSP Reporting

David Y. Stevens, Associate, Spencer Fane Britt & Browne LLP

As of January 1, 2009, most group health plans became subject to the Mandatory Medicare Secondary Payer Reporting Program.  On March 16, 2009, the Centers for Medicare and Medicaid Services (“CMS”) issued the latest version (“Version 2.2”) of the Group Health Plan User Guide for use by responsible reporting entities (“RREs”) under this Program.

The recent updates are generally clarifications, but they could be significant for certain RREs.  While FSAs and HSAs are not reportable, HRAs are considered to be reportable group health plans.  CMS has now clarified, however, that RREs need not report HRA coverage information until October 2010.  The reason for this delay is to allow RREs time to gather the information needed to report on HRA coverage. CMS has indicated that it will provide further guidance on reporting HRA coverage at a later date. 

The new User Guide also points out that CMS prefers RREs to use the Medicare “health insurance claim number” of a Medicare enrollee, if available, rather than the individual’s social security number.

RREs should download the latest User Guide from the CMS web page and review any other updates that may be applicable. 

From United Benefit Advisors Benefits and Employment Briefing, Second Quarter 2009

Johnson & Dugan comment: Although MSP Reporting requirements are the responsibility of "an entity serving as an insurer or third party administrator for a group health plan...", employers should be aware of the requirements and be prepared to respond to insurance carrier requests for information.

Preparing for Travel Abroad

Kathleen A. Dugan, Chief Operating Officer, Johnson & Dugan

In light of recent concern over the Swine Flu virus and traveling abroad in general, below are two websites that are very good for all travelers to review before leaving the country. The sites will also direct visitors to the CDC, as well as travel alerts for all countries. Additionally we have been getting many requests for travelers who need to purchase travel insurance for themselves or family members. Between the two websites there is a wealth of information that may be useful for your employees.

Travel Health Online: Register at https://www.tripprep.com

This site is for travelers who wish to find out about everything from what immunizations are needed for the Countries being visited, which Countries have possible quarantine restrictions, travel alerts, Visa requirements, Centers for Disease Control (CDC), and links to government websites of importance.