March 5, 2021
2020 Taxes: Did You Take a Coronavirus-Related Distribution from your 401(k)?
IMPORTANT! If you received a “coronavirus-related distribution” from your 401(k) plan during 2020, don’t forget to report this on your 2020 Federal income tax return! Even though these distributions are exempt from the ten percent early withdrawal penalty, they are still taxable as regular income – although the tax generally may be spread out over… Continue Reading
March 2, 2021
Disclosure of Direct and Indirect Compensation to Brokers and Consultants
Background ERISA requires contracts between a health plan and its service providers to be “reasonable.” One element of a contract’s “reasonableness” is the price of the service. Service providers often receive indirect compensation from third parties. In order to know whether a service provider’s total compensation is reasonable, the plan fiduciary must know all sources… Continue Reading
February 26, 2021
EBSA Issues Guidance on COBRA Extensions Related to COVID-19
If the President declares a national disaster, language within ERISA and the Internal Revenue Code permits the Secretaries of the Departments of Labor and Treasure to prescribe a period of up to one year that may be “disregarded” when determining due dates for certain actions under a group health plan. The Secretaries issued such an… Continue Reading
February 19, 2021
New Administration, New Rules
With a new administration comes new rules. Executive actions have put some rules on hold while others remain in force. Watch our Associate General Counsel, Liv Ash, give a quick overview of what this means for group health plans.
February 17, 2021
A Prohibition on Gag Clauses
The Consolidated Appropriations Act (CAA) prohibits health plans from entering into contracts that would restrict the plan from: Offering provider-specific cost or quality of care information to referring providers, the plan sponsor, plan participants, or persons eligible to become plan participants. The statute contemplates that this information would be delivered through a “consumer engagement tool”… Continue Reading