Benefits April 7, 2017

Employers Mostly Pleased Health Reform Didn’t Pass

Although some industry experts noted that the bill would reduce employer costs and administrative burdens, a survey finds the majority of employers were relieved it didn’t pass.
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The American Health Care Act (AHCA) was pulled by the House because not enough votes would have been garnered to pass the bill.

Although some industry experts noted that the bill would reduce employer costs and administrative burdens, a new survey finds the majority of employers were relieved it didn’t pass.

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Mercer surveyed 509 health care benefits professionals during a webcast and found 24% of employers are ‘very relieved’ the ACHA didn’t pass, and 32% indicated they were relieved it didn’t pass. Only 21% were disappointed or very disappointed it didn’t pass, while 23% expressed no opinion.

The professionals were also asked to rate what policymakers’ priorities should be when it comes to health care on a scale from one to five, with five being a top priority. Results included:

  • Reduce pharmacy cost = 4.4;
  • Improve price transparency for medical services/devices = 4.1;
  • Stabilize individual market = 4.0;
  • Maintain Medicaid funding = 4.0; and
  • Invest more in population health and health education = 3.7.

Mercer says, “Policymakers should view this health reform ‘reboot’ as an opportunity to partner with American businesses to drive higher quality, lower costs, and better outcomes for all Americans.”

Compliance April 7, 2017

DATAIR Gets Approval of 403(b) Pre-Approved Plan

The document can help plan sponsors ensure their 403(b) plan is compliant with IRS requirements in absence of the Determination Letter Program.

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The Internal Revenue Service (IRS) has issued an Advisory Letter to DATAIR Employee Benefits Systems approving its 403(b) Volume Submitter pre-approved plan document and announced a restatement window for 403(b) plans ending March 31, 2020.

With the phasing out of the IRS Determination Letter program, adopting the DATAIR document can help 403(b) plan sponsors ensure it is in compliance with all current IRS requirements.

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The DATAIR 403(b) document uses the volume submitter format, which allows for the customization of language as may be necessary to meet the specific needs of clients, but remains within the pre-approved volume submitter program.

Lanning Hochhauser, Employee Retirement Income Security Act (ERISA) attorney at DATAIR, says the DATAIR 403(b) document is able to handle a wide variety of provisions and plan types including safe harbor contributions and automatic enrollment. The firm says it is designed to accommodate both ERISA and non-ERISA plans as well as church plans and plans for governmental entities.

Hochhauser adds that the restatement process also provides an opportunity to perform a “self-audit” on the plan’s terms and conditions, as well as a correction window in which defective provisions can be retroactively self-corrected.

A website to keep up with IRS approvals of 403(b) pre-approved plan documents can be found here.

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