ESSENTIAL HEALTH BENEFITS: HHS INFORMATIONAL BULLETIN

On December 16, 2011, the Department of Health and Human Services (HHS) issued a bulletin outlining proposed policies that will give States more flexibility in implementing the Affordable Care Act.  HHS  released information about this intended approach to give consumers, states, employers and issuers timely information as they work towards establishing Affordable Insurance Exchanges and making decisions for 2014.

DOL WORKING WITH STATES TO REDUCE WORKER MISCLASSIFICATIONS

The Department of Labor (DOL)’s Misclassification Initiative means employers need to review whether employees are correctly classified as employees or independent contractors.  Business models that attempt to change, obscure or eliminate the employment relationship are not inherently illegal, unless they are used to evade compliance with federal labor law.

SAN FRANCISCO EMPLOYERS MAY NEED TO ACT QUICKLY TO COMPLY

An amendment to San Francisco’s Health Care Security Ordinance will be effective January 1, 2012.  Employers that use Health Reimbursement Arrangements (HRAs) to comply with the law will need to act quickly in response to this amendment.

WHAT DOES THE FAILURE OF THE SUPERCOMMITTEE MEAN?

The failure of the Joint Select Committee on Deficit Reduction, known as the Supercommittee, to produce a deficit reduction bill has a number of ramifications.  The failure of the Supercommittee to come to an agreement means that automatic cuts will go into effect in 2013.  This gives Congress time to come to an agreement that will alter these automatic cuts.  Of more urgency are other changes that will be effective January 1, 2012.

SUMMARY OF BENEFITS AND COVERAGE COMPLIANCE DATE DELAYED

The Department of Labor has delayed the compliance date for the new Summary of Benefits and Coverage.  On August 22, 2011, the Departments of Labor, Health and Human Services and the IRS issued proposed regulations and proposed templates in connection with implementation of the Summary of Benefits and Coverage and Uniform Glossary requirements of health care reform.