October 2011 Volume X, Issue 10

Obama Administration Drops Part of PPACA

This month, HHS halted implementation of the Community Living Assistance Services and Supports program, known as the CLASS Act, after officials deemed the program could not be self-sustaining, financially sound for 75 years, or affordable to consumers.

The CLASS Act would have been a voluntary insurance plan for working adults (regardless of age or health) and designed to expand options for those who become functionally disabled and require long-term services and support. Adults who met the eligibility criteria would have received a cash benefit to use for purchasing non-medical services and support necessary to maintain in community residence, averaging no less than $50 per day.

Cost of Living Adjustments Released

The IRS released the following 2012 cost of living adjustments (COLAs) pertaining to these benefits:

Qualified Transportation Fringe Benefits: For 2012, the monthly limit on the amount to be excluded from an employee's income for qualified parking benefits will be $240, a $10 increase from the 2011 limit. However, the temporary increase in the combined monthly limit for transit passes and commuter highway vehicle expenses that was in effect for 2011 has expired. Unless the increase is reinstated, the combined monthly limit for transit passes and commuter highway vehicle expenses reverts to $125 in 2012.

Dependent Care Assistance Plan (DCAPs): The $5,000/$2,500 DCAP limit remains unchanged as it is a non-indexed limit.

Archer MSAs: Although new Archer MSAs cannot be established after 2007, if a plan continues to administer such accounts the parameters for Archer MSA-compatible high deductible health coverage have increased. For self-only coverage, the annual deductible must not be less than $2,100 (up $50 from 2011), or more than $3,150 (up from $100 from 2011) with an out-of-pocket maximum of $4,200 (up $100 from 2011). For family coverage, the annual deductible must not be less than $4,200 (up from $100 from 2011), or more than $6,300 (up from $150 from 2011) with an out-of-pocket maximum of $7,650 (up from $150 from 2011).

HRA Reporting Requirement Changes

This is a reminder that the Centers for Medicare and Medicaid Services (CMS) recently announced two changes to the MSP reporting process regarding HRAs.

Annual Benefit Level Minimum Increases to $5,000
New or renewing HRAs with an effective date on or after Oct. 3, 2011 do not have to be reported if the maximum annual reimbursement is less than $5,000. Existing coverage in an HRA will be subject to reporting until the beginning of the next plan year but newly eligible participants do not have to be reported if the effective date of the coverage is on or after Oct. 3, 2011.

New Reporting Required When a Participant Exhausts their HRA Benefit
CMS now requires the inclusion of a termination record with the regular quarterly submission for Medicare beneficiaries whose HRA benefits have been depleted during the previous quarter.

If you are a DataPath MSP Reporting Service client, please refer to the following alert for more information on this requirement.

Click here to read the CMS notice.

DataPath Software Update for
Version 6.0.900 Available

DataPath software update version 6.0.900 is now available for download from inTouch, as well as the "What's New" document for each product.

You still have time to sign up for DataPath 105, COBRA, and 125 webinars to understand the enhancements made to update version 6.0.900. The DataPath 125 webinar will also cover 132, EM2, GCP and OMS. We highly recommend you attend the webinars which apply to your business prior to installing the update.

To register for webinars scheduled today (Thursday, Oct. 27) and Friday, Oct. 28, click here.

To register for webinars next week, click here.

More information about the update is available in the alert issued this week.

John Robbins Jr. On Health Care
Panel for State Employer Summit

John Robbins, Jr. joined 15 other industry leaders on a health care panel for Congressman Tim Griffin's Second Congressional District Jobs Conference held in Little Rock, Ark. at the William J. Clinton Presidential Center. The event brought together authorities from across Arkansas' business and educational industries to discuss job creation in the state. Health care panelists spoke specifically on how businesses are impacted by health care costs, the importance of CDHC accounts and wellness benefits, and agreed consumers should have more "skin in the game" to reduce consumption of health care services and costs.

DataPath Family Races for a Cure

DataPath employees participated in the Race for the Cure presented by the Susan G. Komen Foundation in late October. The team of walkers and joggers met early and donned their DataPath Race for the Cure T-shirt to march the streets of downtown Little Rock and show their support for the cause. This year, the T-shirt was themed "Hope Runs on Heroes, DataPath Runs for Heroes" and featured the names of employees, their family and friends who have battled and survived the disease and those who have lost their lives to cancer.

We are proud of our DataPath family for making a difference!