Register Now to Attend "Connections '10" in St. Augustine, Florida

The agenda for "Connections '10," to be held at the Renaissance Resort at World Golf Village in St. Augustine, Florida March 24-26, has been posted on the "Connections" link at dpath.com. This year’s conference will focus on “playing through” the challenges of health reform and positioning ourselves to benefit from the opportunities such adversity creates. In addition to the Golf Hall of Fame, and the world class golf courses and professional instruction offered at the World Golf Village, the St. Augustine area features stunning old-world architecture, beautiful views of the Atlantic ocean, zoos, parks and of course, a multitude of shopping opportunities.

A conference highlight will be our inclusion into the Caddyshack® Charity Golf Tournament, hosted each year by Bill Murray. This is limited to the first 30 conference registrants to sign up and also includes both lunch prior to the tournament and entrance into the post-tournament awards party on Friday night.  All conference registrants are invited to attend the CaddyShack® pairings party and silent auction on Thursday night at the Murray Brothers Caddyshack® Restaurant at World Golf Village.

Thanks to all who have already registered.  Please sign up soon if you want to play in the golf tournament as slots are filling up fast!

For more information, including room rates and registration, visit the Connections '10 Website.

President Obama Submits New Healthcare Proposal in Time for Bipartisan Health Summit

President Obama has submitted a consolidated healthcare proposal in preparation for the bipartisan health summit meeting on February 26, 2010.  He says that he hopes the Republicans will do the same. Full details of the proposal are posted on the White House website, avoiding the previous criticisms of lack of transparency. 

Obama’s proposal bridges the gap between the previous House and Senate bills, reportedly including new provisions to crack down on waste, fraud and abuse. The White House says that the proposal will:

• Make health care more affordable,
• Make health insurers more accountable,
• Expand health coverage to all Americans, and
• Make the health system sustainable.

For more details, click here.

Meeting Medicare Secondary Payer Reporting Requirements

We apologize if this is becoming redundant, but once again we need to remind you that Medicare Secondary Payer Reporting begins the 4th quarter of 2010 for HRA and MERP Administrators. The Centers for Medicare and Medicaid Services (CMS) have recently provided further clarification on HRAs. As of the January 26th CMS teleconference, we now know that HRAs that are not embedded with the insurance plan are considered free-standing and must be reported by the HRA administrator if the value is in excess of $1,000.00.

There may still be some confusion regarding what is and is not an embedded HRA. The DataPath105 system provides two HRA benefits, Linked and Non-Linked. These are DataPath terminology and do not necessarily mean the HRA is linked to the carrier plan by contract. As we understand CMS, the definition of an embedded HRA is one that is offered by the carrier in conjunction with the health plan, whether the carrier administers the HRA or contracts with a Third Party Administrator to do so. If the HRA is, in fact, embedded then the HRA should be reported with the group health plan.

For a more detailed description of the requirements and a screen-by-screen discussion of how to process them in the DataPath 105 and MAX 105 systems, click here.

IRS Gives Guidance on Heart Act Changes

The IRS has issued a question-and-answer guidance on the recent changes to the Code by the Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART Act). This Act’s changes enhance 401(k) and other benefits for military personnel in qualified military service.
The guidance consists of 20 questions and answers. Some of the areas the Q&As cover are:

1. Survivor and Disability Retirement Benefits With Respect to Military Service.
2. Differential Wage Payments
3. In-Service Distributions

Those with plans covering employees on active military duty should review these Q&As very carefully because they make clear some previously grey areas.

Click here for a copy of Notice 2019-15: Miscellaneous HEART Act Changes

Update on the Children’s Health Insurance Program Reauthorization Act of 2009 (CHIPRA)

CHIPRA, signed into law February 4, 2009, (1) required special enrollment rights for employees or dependents losing or gaining eligibility to Medicaid or SCHIPS coverage, (2) introduced the possibility of a premium subsidy for participation in an employer group health plan, (3) required plans to provide notice to employees regarding premium assistance opportunities available under state law and to report relevant data to the state, and (4) added a civil penalty of up to $100 per day for failure to comply with the notice and disclosure requirements.

To read more about staying compliant with CHIPRA, click here.

Forms 1099-SA and 5498-SA Released for HSA, Archer MSA, and Medicare Advantage MSA Trustees and Custodians

The IRS has released Forms 5498-SA and 1099-SA for the 2010 tax year along with their instructions. Form 5498 must be filed by the trustees and custodians of HSAs, Archer MSAs, and Medicare Advantage MSAs to report contributions to (and the fair market value of) these accounts. They also must file Form 1099-SA to report distributions. These forms are not to be used until 2011 when the 2010 tax year is due.

Click here to view a copy of 5498-SA (2010) (HSA, Archer MSA, or Medicare Advantage MSA Information).

Click here to view a copy of 1099-SA (Distributions from an HSA, Archer MSA, or Medicare Advantage MSA) (2010).

Click here to view the instructions for both forms.

IRS Sets 2010 Maximum Values for Cents-Per-Mile and Fleet-Average Methods of Valuing a Vehicle's Personal Use

Generally, if a company car is used only for business purposes (or if the personal use is de minimis), there is no income to the employee. However, if there is income to the employee, IRS has set up two additional methods: cents-per-mile and fleet-average rules.  (In order for these methods to be used, however, the vehicle's fair market value must not exceed specified dollar limits.)

Fleet-Average Rule. The fleet-average rule governs employers operating a fleet of 20 or more qualifying vehicles (depending on the average lease value). The IRS has set up the maximum vehicle values to be used in calendar year 2010. The maximum values for which the fleet-average rule may be used are $20,300 for passenger automobiles and $21,000 for trucks or vans (up from $19,900 for both in 2009).

Cents-Per-Mile. The cents-per-mile rule determines the value of an employee’s personal use by multiplying the standard mileage rate (50 cents per mile for 2010) by the number of miles driven for personal purposes. The maximum values for the cents-per-mile rule are $15,300 for passenger automobiles and $16,000 for trucks or vans (up from $15,000 and $15,200, respectively, in 2009).

Click here to view Rev. Proc 2010-10, 2010-3 I.R.B. 300 (Jan 14, 2010).

COBRA: Facts and Resources

The COBRA premium subsidy, originally created by the American Recovery and Reinvestment Act of 2009 (ARRA) and amended by the Department of Defense Appropriations Act of 2010 ( DOD Act) has made an already difficult set of laws and regulations even harder to keep straight.

Click here for a brief review and for Q&A sheets, fact sheets and other valuable links to simply answer any questions you may still have.    

If you know someone who would like to receive our newsletter, email subscribe-path@dpath.com with their name, company name, telephone number, and email address and they will be added to the mailing list.

If you want to unsubscribe, send a blank email to unsubscribe-path@dpath.com.