If there are any lessons to be learned from the Patient Protection & Affordable Care Act (PPACA), it’s that now is not the time to drop the ball on compliance. Increased regulations, increased scrutiny, and increased penalties, combine to make the compliance of benefits account management now more crucial than ever. Whether dealing with the Internal Revenue Service (IRS) or the Department of Labor (DOL), the regulations are complex, and failure to comply can mean serious consequences. A simple misstep or seemingly insignificant oversight can be costly. In fact, under the worst case scenario, the sustainability of an entire business can be in jeopardy. Here are some top compliance issues all Plan Sponsors (employers) should be watching.
ERISA
The Employee Retirement Income Security Act (ERISA) requires employers to disclosed Plan information to all eligible employees and in some cases to the government. ERISA rules are stringent, with a set of complicated time, reporting, and recordkeeping requirements.
PCORI
The Patient-Centered Outcomes Research Institute (PCORI) is charged with examining the relative outcomes, effectiveness, and appropriateness of different medical treatments, and is funded in part by employer-paid fees. Initial mandates include a fee to be imposed on employers and insurance carriers for seven years, with fee amounts expected to change during that time.
Form 5500 Preparation
IRS Form 5500 is used to report information concerning employee benefits plans. Employers with 100 or more employees who are participating in any health and welfare benefits plan as of the first day of a Plan Year must complete an IRS Form 5500 with applicable Schedules for that Plan Year, and must do so within seven months of the Plan Year’s end.
Non-Discrimination Testing
Of all the requirements associated with benefits account management, none are more crucial to the Plan’s compliance than Non-Discrimination Testing. Each year a series of calculations are required to determine if the Plan favors Highly Compensated Individuals and/or key employees (with respect to eligibility and benefits).
Getting Help
Now is the time for Plan Sponsors to “up” their compliance game! And as they go about finding a trusted advisor to help ensure the compliance of their Plans, to assist with necessary changes and administrative process updates, more and more savvy Plan Sponsors are turning to TASC. With 75+ years of combined industry expertise, in-house legal counsel, free webinars, and a Hold-Harmless Agreement, TASC’s compliance table is bountiful. As one of the nation’s only third-party administrators with a Governmental Affairs Department, TASC is positioned to fully analyze the “world” of healthcare reform as it transitions and evolves. Whether you do or do not choose TASC as your administrator, I strongly urge you—and all Plan Sponsors—to find knowledgeable and reliable assistance when dealing with these complicated compliance issues. The risks are just too high to go it alone.
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