Wednesday, August 31, 2011

Employer Compliance Alert!

NEW RULE REQUIRES NON-UNION EMPLOYERS TO NOTIFY EMPLOYEES OF THEIR RIGHT TO UNIONIZE


The National Labor Relations Board (NLRB) has just issued a final rule obligating the vast majority of private sector employers to notify employees of their rights under the National Labor Relations Act (NLRA). The purpose of the notice is to inform employees of their rights to organize, form, join or assist a union; to bargain collectively with their employer; and to discuss their wages, benefits, and other terms and conditions of employment with their co-workers or a union. The new rule covers not only union workplaces, but also non-union workplaces.

The rule will pose new challenges for non-union employers and make it harder for all employers to defend themselves against allegations of unfair labor practices. For example, an employer’s failure to properly comply with the rule will toll the six-month statute of limitations period for filing a charge against the employer for unfair labor practices. An employer’s knowing violation of the rule can also be used against the employer as evidence of unlawful motive in anti-union discrimination and other unfair labor practice litigation.

Employers should take immediate steps to determine whether they are subject to the rule. Covered employers must be in full compliance by November 14, 2011. Human resource professionals, executives, and supervisors should be trained on how to properly respond to employees’ questions about their NLRA rights, as well as how to properly address union-related activities in the workplace.

The notice of rights that employers must post under the new rule is not yet available, but employers should periodically check the NLRB website for additional details.


Tuesday, August 30, 2011

Health Care Reform Update: HRA Limits; Federal Exchanges; Health Care Survey

Thanks to our partners at UBA for supplying us with our most recent Health Care Reform Update:


CCIIO Exempts HRAs From Applying for Annual Limit Waivers
The U.S. Center for Consumer Information and Insurance Oversight (CCIIO) has issued guidance with respect to the application of the existing annual limit waiver criteria to Health Reimbursement Arrangements (HRAs). This supplemental guidance exempts HRAs that are subject to the restricted annual limits as a class from having to apply individually for an annual limit waiver.

An HRA in effect prior to Sept. 23, 2010 is exempt from applying for an annual limit waiver for plan years beginning on or after Sept. 23, 2010 but before Jan. 1, 2014. These HRAs still must comply with the record retention and Annual Notice requirements to participants and subscribers set forth in the supplemental guidance issued on June 17, 2011.

The guidance can be found at: http://cciio.cms.gov/resources/files/final_hra_guidance_20110819.pdf.

HHS's Big Problem with the Federal Fallback Exchange
When the Department of Health and Human Services (HHS) released the first regulation providing guidance to the states on forming a health benefit exchange in July, one thing many health policy wonks noticed right away is that it contained no specifics on how a federal fallback exchange might work. Finally, last week a Politico report shed some light as to why HHS might be so reticent with the details.

HHS has virtually unlimited funding to help states create their own exchanges, but a quirk in the Patient Protection and Affordable Care Act (PPACA) is that it did not appropriate any funds to HHS for the federal government to develop its own infrastructure to fulfill the PPACA requirement to create and operate exchanges in all the states that do not establish their own. According to Politico, "A federal exchange will have the same authority states do to impose fees on insurance sold through the exchange once it is open for business. But there is no money coming in until people start purchasing insurance, and there is a great deal of work to be done to prepare to open the doors of federal exchanges."

Buck Releases HCR Impact Survey of Health Care Organizations
Some of the key findings from a newly released Buck Consultants national survey of healthcare organizations regarding the impact of health care reform:

  • 79 percent of the survey respondents indicated that reform will increase health care costs in the country (with 43 percent indicating that costs will increase significantly); only 20 percent believe it will reduce costs.
  • More than 70 percent believe the hospital industry and employer benefit plans will be worse off.
  • 48 percent believe their families will be worse off, and only 21 percent believe they will be better off.
  • 41 percent believe quality will decrease nationally, while 39 percent think quality will improve.
  • 45 percent believe patients will be worse off versus 44 percent who believe they will be better off.
  • 60 percent believe the country will be worse off because of health care reform, while 34 percent think it will be better off.
  • 72 percent think health care reform will adversely affect employer health plans.
  • 57 percent of the respondents lost grandfathering for some or all plans in 2011, and we anticipate that nearly 100 percent of employer plans will lose grandfathering by 2014.
  • The primary reason (65 percent) for loss of grandfathering was that plan design changes were implemented with plan savings that exceeded the additional cost of complying with the health care reform requirements
  • 75 percent expect cost increases of 1 percent or more due to reform in 2011.
  • 58 percent expect higher costs due to reform in 2014.
  • 71 percent expect higher employer costs due to reform long term.
  • More than 90 percent of the survey respondents anticipate passing on some or all of these additional costs to employees through higher employee contributions or reduced coverage.
A full copy of the survey results may be downloaded free of charge by registering at http://www.bucksurveys.com/.

Tuesday, August 16, 2011

Health Care Reform Update: Federal PCIP Broker Registration & HCR Affordability Test

We have teamed up with our partners at United Benefit Advisors to bring you the most recent Health Care Reform update:

Federal PCIP Broker Registration Process Open

In May, the Obama administration announced that the high-risk pool program created by PPACA would begin paying agents and brokers for successfully enrolling eligible people into the PCIP program this fall. The PCIP referral program is only open to the 23 states where the federal government runs the PPACA high-risk pool program. HHS will begin paying the $100 flat enrollment fee September 1.

Agents and brokers who wish to become involved can now register. To qualify to participate in the PCIP program, you must:
  • be an insurance broker in good standing in your state,
  • have your license confirmed through the NIPR database,
  • have a valid federal tax identification number (FTIN) or social security number (SSN), 
  • agree to accept payments through EFT, and
  • submit a completed EFT form for electronic payment.
IRS to issue new health care reform law affordability test
The Internal Revenue Service said it will develop new rules that will make it easier for employers to determine if their health care plans are "affordable" and exempt from a stiff financial penalty mandated by the health care reform law. That notice is expected to be published in the Aug. 17 Federal Register.

In rules proposed Friday that were welcomed by employers, the IRS said it will develop a safe harbor in which coverage would be considered affordable so long as the premium contribution for single coverage did not exceed 9.5% of employees' W-2 wages, instead of employees' household income (which employers generally do not know). The IRS also affirmed that the 9.5% affordability test is to be applied only on single coverage, allowing employers to charge higher amounts for family coverage.

Wednesday, August 3, 2011

Contraceptives and ACA

On Monday, August 1st, HHS released an amendment to the ACA preventive services regulations that focuses on women’s health issues. They have indicated that non-grandfathered health plans need to provide the following items at no cost-sharing to the patient:


  • Well-woman visits
  • Contraception
  • Screening and counseling for AIDS, HPV, sexually transmitted infections, gestational diabetes and domestic violence
  • Breastfeeding supplies and counseling
Plans provided by religious institutions can be granted a waiver of these requirements if they conflict with the religious beliefs of the employer.

The regulations also allow that if a generic equivalent is available, plans can apply copays and/or deductibles to non-generic supplies.

It’s difficult to estimate the financial impact of these changes until the marketplace develops a reaction, but it’s clear that the regulations, like any benefit mandate, will have an initial cost increase. Long-term, overall costs are expected to decrease as fewer unplanned pregnancies, early detection of adverse infections and domestic situations, as well healthier newborns should emerge as positive results.

It’s important to recognize these requirements are to be effective with plan years starting on or after August 2, 2012. Carriers and plan sponsors will need to adapt their systems and processes during the next year to accommodate these changes, but we shouldn’t expect a lot of details to materialize on these changes for the next few months. As these decisions are communicated to TrueNorth, we’ll be sure to keep you informed.

Let us know if you have any questions on this.

TrueNorth Benefits Team
319.364.5193

Tuesday, August 2, 2011

HCR Update: Preventive Services; ERRP; Claims Review

We have partnered with our friends at UBA to bring you the latest Health Care Reform updates:


IOM Issues Recommendations for Required Preventive Services
A new report from the Institute of Medicine (IOM) recommends that eight preventive health services for women be added to the services that health plans will cover at no cost to patients under Public Health Service Act Sec. 2713, as added by the Patient Protection and Affordable Care Act of 2010 (PPACA).

At the HHS's request, an IOM committee identified critical gaps in preventive services for women, as well as measures that will further ensure women's health and well-being. The recommendations are based on a review of existing guidelines and an assessment of the evidence on the effectiveness of different preventive services. The committee identified diseases and conditions that are more common or more serious in women than in men or for which women experience different outcomes or benefit from different interventions.

The report suggests the following additional services:
  • screening for gestational diabetes;
  • human papillomavirus (HPV) testing as part of cervical cancer screening for women who are older than age 30;
  • counseling on sexually transmitted infections;
  • counseling and screening for HIV;
  • contraceptive methods and counseling to prevent unintended pregnancies;
  • lactation counseling and equipment to promote breastfeeding;
  • screening and counseling to detect and prevent interpersonal and domestic violence; and
  • yearly well-woman preventive care visits to obtain recommended preventive services.
For more information, visit http://www.iom.edu/Reports/2011/Clinical-Preventive-Services-for-Women-Closing-the-Gaps.aspx.

New Guidance Available for Early Retirement Reinsurance Program
The Centers for Medicare and Medicaid Services has published supplemental program guidance and has updated existing program guidance under the Early Retiree Reinsurance Program (ERRP).

The supplemental guidance further clarifies ERRP reimbursement policy by identifying certain International Classification of Diseases, Ninth Revision (ICD-9) diagnosis codes that are not acceptable as principal diagnosis codes and procedure codes that are not acceptable under Medicare. Therefore, medical items and services associated with ERRP claims that include any such diagnosis codes as a principal diagnosis code or procedure codes will not be credited toward the ERRP cost threshold and will not be reimbursed. The guidance related to the ICD-9 codes applies to every reimbursement request, regardless of whether the reimbursement request was initially submitted before or after the publication of the guidance, July 18, 2011.

CMS has also updated existing program guidance, Claims Ineligible for Reimbursement under the Early Retiree Reinsurance Program. CMS has incorporated additional excluded Current Procedural Terminology (CPT) and Healthcare Common Procedure Coding System (HCPCS) codes to this guidance document.
EBSA Issues Amendments to Interim Final Rules and Model Notices on Internal Claims and Appeals and External Review Processes
The U.S. Department of Labor, Department of Treasury and Department of Health and Human Services released a correction of amendment to interim final rules with request for comments. The full text is available at http://www.gpo.gov/fdsys/pkg/FR-2011-07-26/pdf/2011-18820.pdf.

The amendment to the interim final rule is effective July 22, 2011. Public comments on the amendment to the regulations must be submitted on or before July 25, 2011.

The agencies also released additional guidance and revised model notices related to the amended interim final rules.
  • Technical Release 2011-02
  • Revised Model Notice of Adverse Benefit Determination
  • Revised Model Notice of Final Internal Adverse Benefit Determination
  • Revised Model Notice of Final External Review Decision