Mandatory ACA fees payment deadline is 10 days away—One of 3 things you need to know this week in employee benefits
Deadline to pay PCORI fees is fast approaching
The Patient Centered Outcomes Research Institute (PCORI)—established under the Affordable Care Act to help pay for research to evaluate and compare the effectiveness and risks of different medical treatments, services and drugs—gets its funding in part from fees paid by self-funded employers.
For all self-funded health plans, PCORI fees are due by July 31—just 10 days from now.
For plan years ending between Jan. 1, 2013, and Sept. 30, 2013, the fee is $1 times the plan’s average number of covered lives (including spouses, dependents and those receiving COBRA). For plan years ending between Oct. 1, 2013, and Dec. 31, 2013 (so, any 2013 calendar-year plan), the fee is $2 times the average number of covered lives.
PCORI fees are imposed on self-funded group health plans that provide “significant medical care or treatment”—medical, prescription, dental, wellness, even EAP—including plans for retirees only.
However, standalone dental and vision plans, flexible spending accounts and HRAs that cover only dental and vision benefits are exempt from PCORI fees.
To report and pay PCORI fees, plan sponsors should use IRS Form 720.
401(k) balances hit all-time high, Fidelity reports
At the end of the second quarter, an analysis of Fidelity’s 401(k) and IRA accounts shows that 401(k)s have hit an all-time high: $91,000, up from $80,600 at the end of the second quarter 2013.
The news is even better for employees who have been active in a workplace 401(k) retirement plan for a full 10 years—their average balance rose 15% per year over the past decade to $246,200.
Stock market gains get the lion’s share of the credit for the account surge, with 77% of the one-year 401(k) balance increase due to the equity markets and 23% due to employee and employer contributions. That said, employee 401(k) contributions continued to grow, averaging $6,050 over the past year. Employers contributed an average of $3,540.
This week’s hidden gem: New EEOC pregnancy guidance presents ‘conundrums’ for employers
Although intended to provide clarity for employers in how to provide workplace accommodations and avoid discrimination, new guidance from the Equal Employment Opportunity Commission relating to pregnancy and disability presents “a number of conundrums for employers,” one employment law attorney tells Employee Benefit News.
The guidance melds the way employers should treat pregnant employees under the Americans with Disabilities Act and the Pregnancy Discrimination Act. Although the new guidelines make it easier for pregnant workers to claim legal accommodations for condition-related illness or injury, the rules also could create confusion for employers who previously maintained distinct policies for pregnancy and disability.
Bonus: Influence the benefits industry in just 10 minutes—Take the Inside Benefits Communication Survey!
We are honored to announce that we have partnered with the National Business Coalition on Health (NBCH) to bring you the 2014 Inside Benefits Communication Survey. This survey of benefits professionals will help us to learn more about how you are strategizing and implementing benefits communication.
Why take the survey?
- It only takes 10 minutes!
- You’ll help us learn even more about the industry-wide successes and improvement opportunities when it comes to benefits communication.
- One of every 50 participants will get a free, full registration to your choice among two leading industry events: The 2014 NBCH 19th Annual Conference (November 10–12 in Washington, D.C.), or the 2015 Health & Benefits Leadership Conference (April 8–10 in Las Vegas) led by Human Resource Executive.
- Plus, NBCH members may receive exclusive breakout data from the survey that pertains to respondents from their particular region.
