Compliance May 20, 2011

EBSA Announces VFCP Workshop

May 20, 2011 (PLANSPONSOR.com) - The U.S. Department of Labor's Employee Benefits Security Administration is hosting a workshop on how to correct certain fiduciary violations under the Employee Retirement Income Security Act (ERISA).
Reported by

The free, online workshop will be held on May 24, 2011, from 10 a.m. – 12:30 p.m. EDT for employee benefit plan sponsors, officials, parties-in-interest and service providers. The Webcast will offer comprehensive information and individual help regarding the department’s Voluntary Fiduciary Correction Program (VFCP), which provides an opportunity to identify and self-correct plan activities that might otherwise result in investigative or enforcement action. EBSA staff will provide guidance on the application process.   

The EBSA said those who do choose to participate in VFCP must fully correct eligible transactions, calculate any losses, restore those losses with interest or profits, and distribute any supplemental benefits owed to eligible participants and beneficiaries. The program offers relief from Labor Department penalties and, in some cases, from Internal Revenue Service excise taxes that may otherwise be imposed.  

Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.

For more information and to register for the workshop, visit http://www.dol.gov/ebsa/pdf/vfcp052411.pdf.
Compliance May 20, 2011

HHS Issues Final Regs on Premium Increase Reviews

May 20, 2011 (PLANSPONSOR.com) - The Department of Health and Human Services (HHS) issued a final regulation to ensure that large health insurance premium increases will be thoroughly reviewed, and consumers will have access to clear information about those increases.
Reported by

“Combined with other important protections from the Affordable Care Act, these new rules will help lower insurance costs by moderating premium hikes and provide consumers with greater value for their premium dollar,” HHS said in a press release. In 2011, this will mean rate increases of 10% or more must be reviewed by state or federal officials.  

Starting September 1, 2011, the rule requires independent experts to scrutinize any proposed increase of 10% for most individual and small group health insurance plans. States will have the primary responsibility for reviewing rate increases. While most states will take on this responsibility, HHS will serve in a backup role in states that don’t have the resources or authority to review rates.   

Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.

HHS said it has awarded $44 million in Affordable Care Act grants to states to help strengthen their oversight capabilities. An additional $200 million will continue to be available to states under the Act.  

Starting September 2012, the 10% threshold will be replaced by state-specific thresholds that reflect the insurance and health care cost trends in each state. The final rule clarifies that HHS will work with states in developing these thresholds.  

The rule requires insurance companies to provide consumers with easy to understand information about the reasons for unreasonable rate increases and post the justification for those hikes on their Web site as well as on the HHS Affordable Care Act Web site, http://www.healthcare.gov.   

For more information, visit http://www.HealthCare.gov/news/factsheets/ratereview05192011a.html.

«