December 27 Due Date for Prescription Drug Cost Reporting is Approaching (UPDATE)
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As part of the Consolidated Appropriations Act of 2021 (CAA), group health plans and carriers will soon be required to report certain demographic and spending information about a plan’s prescription drug expenditures. The Departments will use this data to publish public reports on prescription drug reimbursements, pricing trends, and the impact of prescription drug costs on premium costs. The pharmacy reporting requirement generally applies to group health plans (both fully insured and self-insured) and carriers.
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Compliance in Employee Benefits
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Cafeteria Plans: Change in Status Events and Permissible Employee Election Changes
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Cafeteria plans, or plans governed by IRS Code Section 125, allow employers to help employees pay for expenses such as health insurance with pre-tax dollars. Employees are given a choice between a taxable benefit (such as cash) and two or more specified pre-tax qualified benefits (health insurance, for example). Employees can select the benefits they want, just like an individual standing in the cafeteria line at lunch.

IRS rules limit the types of benefits that can be offered through a cafeteria plan to...
IRS Announces Adjusted Patient-Centered Outcomes Research Institute Fee
Read Time: 5 Minutes

The IRS recently released Notice 2022-59 to announce the inflation-adjusted amount group health plans must use to calculate the amount due to fund the Patient Centered Outcomes Research Institute (PCORI). Plans ending between October 1, 2022, and December 31, 2022, must use the adjusted amount to calculate the fee that will be due by July 31, 2023. The new per capita amount is $3.00 – increased from $2.79 for plans ending after September 30, 2021, and before October 1, 2022 – which plan sponsors and issuers will multiply by the average number of covered lives under the relevant plan to derive the total amount due. ...  
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IRS Releases Critical 2023 Employee Benefit Plan Limits
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The IRS recently published Revenue Procedure 2022-38 in which it announced its list of annual key employee benefit limits based on periodic inflation or cost-of-living adjustments. The newly announced limits represent higher than normal increases for contributions to, and permitted carryovers from, health flexible spending arrangements (HFSAs)...  
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Recent Court Decisions Should Put Employers on Notice Regarding COBRA Administration
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Two cases recently decided in federal courts in Illinois and Alabama, respectively, provide cautionary tales for employers and how they administer COBRA continuation coverage, particularly how they provide election notices following a COBRA qualifying event. In both cases, the courts determined that claims of COBRA notice violations could not be denied because the responsible employer could not demonstrate that it had properly issued COBRA election notices...  
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ACA Compliance Issues and the 1865-C Letter
Source: HR Service Inc.
Read Time: 5 Minutes

ACA Compliance continues to create struggles for employers. Recently, employers are receiving more inquiry letters from the IRS, especially letter 1865-C. This is a letter sent out for issues with incorrect or missing forms for 1094/1095 B and C filings.

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Compliance Question of the Week

Q: A new employee told coworkers that she received a signing bonus. Now they’re upset, saying they’ve been here longer and haven’t gotten anything extra. What should I do about this situation?

A: First, don’t reprimand the new employee who shared her salary information. Discussing pay is a protected concerted activity under the National Labor Relations Act. You can read about this law and what protections it provides to employees on the platform.

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