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Monthly Newsletter
Brought to you by Integrated Benefit Solutions
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February 2017 Issue
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New Executive Order Calls for
Minimizing Economic Burden of ACA
 President
Trump has signed an executive
order calling upon federal administrative agencies to minimize the
economic burden of the Affordable Care Act (ACA), pending repeal of the
law. Until further guidance is issued or legislation is signed, however,
all ACA requirements remain in effect, including penalties for
noncompliance.
In addition to making clear that the Trump administration seeks the prompt
repeal of the ACA, the executive order specifically calls upon agencies to
exercise authority and discretion to:
- Waive, defer, grant exemptions from, or delay the
implementation of any ACA provision or requirement that would impose a
fiscal or regulatory burden on states, individuals, health care
providers, health insurers, and medical device and product producers (including
fees, taxes, and penalties);
- Provide greater flexibility to states, and
cooperate with them in implementing health care programs; and
- Encourage the development of a free and open market
for the offering of health care services and health insurance.
The executive order must be
implemented in a manner consistent with applicable law, including
the Administrative Procedure Act, which requires extended review of and
public comment on any federal rules which may be proposed as a result of
the executive order.
For more information on the ACA, check out our Health Care Reform
section.
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DOL Adjusts Labor Law Penalties
for 2017
 The
U.S. Department of Labor (DOL) has published a final
rule adjusting for inflation the civil monetary penalties assessed for
violations of a number of federal labor laws. The increases generally apply
to civil penalties assessed after January 13, 2017, whose
associated violations occurred after November 2, 2015.
Key Penalty Increases
Penalty increases that may be of particular interest to employers include:
- FLSA Requirements. Repeated or willful violations of the
FLSA's minimum wage or overtime pay requirements are subject to a
penalty of up to $1,925 per violation (formerly
$1,894);
- FMLA Posting. Willful
violations of the FMLA's posting requirement are
subject to a penalty not to exceed $166 for each
separate offense (formerly $163) (note: covered employers must post
this general notice even if no employees are eligible for FMLA
leave);
- Employer CHIP Notice. Failure to provide employees with an Employer
Children's Health Insurance Program (CHIP) Notice is subject
to a penalty of up to $112 per day per violation
(formerly $110);
- SBCs. Failure
to provide a Summary of
Benefits and Coverage (SBC) is subject to a penalty of up
to $1,105 per failure (formerly $1,087);
- Form 5500. Failure
or refusal to file an annual report (Form 5500) with the DOL is subject to a penalty
of up to $2,097 per day (formerly $2,063); and
- OSH Act Posting. Violations
of the OSH Act's posting requirement are subject
to a maximum penalty of $12,675 for each violation
(formerly $12,471).
Review our Compliance by Company
Size chart for a summary of key federal labor laws that may apply
to your company.
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New Expiration Date for Employer
CHIP, COBRA General, and COBRA Election Notices
The U.S. Department of Labor
(DOL) has extended the effective dates of its model Employer CHIP Notice, General Notice of COBRA Rights,
and COBRA
Election Notice through December 31, 2019. Previously,
these model notices expired on December 31, 2016.
No other changes have been made to these notices. For the latest
guidance regarding these notices, please visit the DOL's Children's
Health Insurance Program Reauthorization Act and COBRA Continuation
Coverage webpages, or contact the DOL directly at 1-866-487-2365.
Our Benefits Notices by
Company Size section features additional model notices for
employers of all sizes.
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Reminder to Employers: Post OSHA
300A Summary Starting Feb. 1
 Employers subject to the recordkeeping requirements of
the federal Occupational Safety and Health Act are reminded to post the
OSHA Form
300A, Summary of Work-Related Injuries and Illnesses,
between February 1, 2017 and April 30, 2017. The Form 300A
lists the total number of job-related injuries and illnesses that occurred
during the previous year and must be posted even if no work-related
injuries or illnesses occurred during the year. It should be displayed
in a common area where notices to employees are usually posted so that
employees are aware of the injuries and illnesses occurring in the
workplace.
A company executive must certify that he or she has examined
the OSHA 300 Log and that he or she reasonably believes—based on his or her
knowledge of the process by which the information was recorded—that the
annual summary is correct and complete.
To read more about worker safety and health, please visit our section
on Safety & Wellness.
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Medicare Part D Online
Disclosure to CMS Due Mar. 1
 The
Medicare Modernization Act requires employers that provide prescription drug
coverage to Medicare-eligible individuals to complete the Online Disclosure Form to
the U.S. Centers for Medicare & Medicaid Services (CMS) to report
whether such coverage is creditable prescription drug coverage (“creditable
coverage”). Creditable coverage is coverage that is expected to pay, on
average, as much as the standard Medicare prescription drug coverage.
This disclosure is required annually, no later than 60 days from
the beginning of a plan year—typically March 1st for calendar
year plans—and at certain other times.
Visit our section on Medicare for more information about
how the law affects employer-provided group health plans.
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