IRS Increases PCORI/CERF Fee for 2017

Posted May 5, 2017 by PHaynes

With the release of IRS Notice 2016-64, issued on Nov. 4, 2016, the IRS provided that the PCORI fee (Patient-Centered Outcomes Research Institute fee) also called the CERF fee (Comparative Effectiveness Research Fee) for plan years ending on or after Oct. 1, 2016, and before Oct. 1, 2017, including 2016 calendar year plans, is $2.26 per each person covered under the applicable health plan, up from $2.17 for the previous plan year.

As you may recall, for self-insured plans and HRAs, the Research Fee is due by July 31st of the calendar year following the end of the applicable plan year. It is paid on the 2nd quarter Form 720 filing. The next payment and filing deadline is July 31, 2017.

PCORI fees are used to fund research on patient-centered outcomes and apply to plan and policy years ending after October 1, 2012 and before October 1, 2019.

For insured plans, the insurer is responsible for paying PCORI fees and reinsurance contributions.

For self-insured plans, PCORI fees are imposed on the plan sponsor and generally cannot be paid from plan assets, while reinsurance contributions are imposed on the plan itself and may be paid from plan assets (if otherwise permitted).

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HRCI & SHRM Pre-approved AssuredPartners & Crawford Advisors Webinar | Change That Sticks: Holistic Benefit Communications for Better Acceptance & Higher Uptake

Posted May 3, 2017 by Megan DiMartino

Comprehensive communication planning can increase employee use of benefits. Vendors are offering an increasingly wider range of services, making it hard for employees to know where to go, and for what type of service. Tax-advantaged benefits have extended beyond 401(k) plans to Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) – who is looking at the bigger picture for employees? Additionally, it’s becoming increasingly important to integrate wellness plans, without overwhelming employees.

Join subject matter experts Kip Soteres, Founder and President of Soteres Consulting, and Beth Archie, Change Communications Consultant, for this HRCI* and SHRM** pre-approved, one-hour, complimentary webinar and learn strategies to effectively communicate information about your employer-sponsored benefits to your employees.

Training will provide:

  • Templates for year-round strategic communication planning tied to employee benefits
  • Tactical planning templates for more effective mini-campaigns and a simple checklist methodology to follow when filling them out
  • Tips to demonstrate how strategic communicators can be partners in developing benefit programs that are easier for employees to understand and use
  • Examples from health care and other industries

Webinar Details:

  • Tuesday, May 16, 2017
  • 2:00 – 3:00pm EDT
  • No Cost to Attend
  • This webinar is open to all HR and Finance Professionals – but not to brokers, agents, TPAs and PEOs.

 

 

About our presenters:

  • Kip Soteres is the Founder and President of Soteres Consulting. Prior to beginning Soteres Consulting, Kip had VP, Director and Manager Roles at companies including Highmark Health, PNC Bank and BCBS of TN. Kip has many large clients utilizing his services in this area including BCBS Association. Kip has been frequently published on change management and communication topics and has led dozens of M&A communication efforts across multiple industries.
  • Beth Archie is a Change Communications Consultant at Soteres Consulting. Prior to her role with Soteres, Beth had both Manager and Consultant roles at companies such as Highmark Health, Honda Aircraft Company and Advanced Home Care. Beth is an experienced HR communicator for complex HR technology platform implementations in high-change environments and has led employee engagement initiatives resulting in multiple Top 5 “Best Place to Work” recognitions.

*The use of this seal confirms that this activity has met HR Certification Institute’s (HRCI) criteria for recertification credit pre-approval. This activity has been approved for 1 HR (General) recertification credit hours toward aPHR, PHR, PHRca, SPHR, GPHR, PHRi, and SPHRi recertification through HRCI.

**Crawford Advisors is recognized by SHRM to offer Professional Development Credits (PDCs) for SHRM-CP or SHRM-SCP. This program is valid for 1 PDC for the SHRM-CP or SHRM-SCP. For more information about certification or recertification, please visit shrmcertification.org.

For more information contact info@crawfordadvisors.com. The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

COBRA and the Equitable Tolling Doctrine

Posted April 28, 2017 by Megan DiMartino

Question: I just found out that a former employee near the end of his COBRA election period was in an accident and is currently incapacitated. What are my options, administratively, if the election period ends and he has not yet elected COBRA coverage?

Answer (from HR.BLR.com): The Consolidated Omnibus Budget Reconciliation Act (COBRA) does not specify unexpected events, such as illness or accident, which would leave a qualified beneficiary unable to act in a timely manner. Because of this, the courts had to fill in the gaps and helped create a doctrine called “equitable tolling.” This allows COBRA timeframes to be “tolled,” or suspended, until a legal representative is appointed to act for the qualified beneficiary. Generally, the doctrine can apply to both the election and premium payment periods.

Below are case examples behind the reasoning and principles:

  1. In Branch v. G. Bernd Co., a court allowed a reasonable period for a guardian to be appointed, plus a reasonable period afterward for the guardian to exercise the COBRA rights for the incapacitated qualified beneficiary. Therefore, the court allowed the administrator of a qualified beneficiary’s estate to elect COBRA coverage even after the end of the 60-day period.
  2. The Branch rule was followed in Sirkin v. Phillips Colleges Inc., which held that if an insured misses a premium deadline under COBRA due to the insured’s incapacity to know of or meet obligations, the deadline for that premium payment is tolled for a reasonable period until the insured or their legally appointed guardian is able to cure the deficiency.
  3. In Meadows v. Cagle’s Inc., a court indicated that a proper COBRA election notice is required as a prerequisite to the beginning of a COBRA election period. The court found that for a COBRA election to be valid, it must be sent to a person who is legally capable of acting on the information and must provide enough information for that person to act intelligently.
  4. In Lincoln General Hospital v. Blue Cross/Blue Shield of Nebraska, a court held that the COBRA election and payment periods are tolled to protect incompetent qualified beneficiaries, but only until a personal guardian is appointed.
  5. In Hummer v. Sears, Roebuck & Co., a court held that even where tolling applies, it does not start a new COBRA election period. Rather, it allows a qualified beneficiary’s representative to elect COBRA coverage during a period equal to the number of days remaining in the original COBRA election period.

Employers and plan administrators should consult with their legal counsel before applying the equitable tolling doctrine to any such specific situations.

Source: HR Daily Advisor | Ask the Expert: COBRA Quandary 

For more information contact info@crawfordadvisors.com. The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

FMLA Effects on Other Laws

Posted April 24, 2017 by Megan DiMartino

The Family and Medical Leave Act (FMLA) has many effects on laws such as the Americans with Disabilities Act (ADA), workers’ comp, and other state laws that apply specifically to medical or disability leaves. FMLA may also intersect with employer sponsored leaves and policies such as short or long term disability.

When FMLA overlaps with other laws, the employer must follow the law which entitles the employee to the greater benefit. Also, if a collective bargaining agreement (CBA) or your own policy provides a better benefit to the employee, then follow it as well.

Many states follow the federal FMLA almost to the T, but others may differ in the following ways:

  • Apply to smaller organizations;
  • Require you to allow more time off;
  • Cover different reasons for leave, such as domestic violence or school conferences;
  • Cover different people; or
  • Require paid leave.

Generally, leave laws that apply to the same situation can run concurrently, unless the other leave law says it is available after FMLA has been utilized.

Workers’ Compensation

State workers’ compensation laws come into effect if an employee suffers from a workplace illness or injury. It may be required that the leave run concurrently with FMLA. But should the employee’s workers’ compensation leave end first, you may be required to allow continued leave through FMLA if the employee suffers from a serious health condition.

In some states, even if the worker is still on workers’ compensation leave, the employer may terminate them if they have a sound policy of terminating employees who are unable to return to work after the end of FMLA.

Additional Requirements When Employees Take FMLA

  • Fair Labor Standards Act (FLSA) – The FLSA governs minimum wage and overtime requirements for employees. In general, employers are not allowed to reduce the pay of an exempt employee for partial-day absences. Doing so may result in the employee (and possibly others in the same job category) losing the exemption and being owed for past overtime worked.
    • One big exception is that employers are allowed to make deductions from exempt employees’ salaries for hours taken as intermittent or reduced FMLA leave within a work week, without affecting the employee’s exempt status. That is true even if the employee takes FMLA leave in partial-day increments.
  • Consolidated Omnibus Budget Reconciliation Act (COBRA) – In general, COBRA continuation coverage is triggered on the last day of an employee’s FMLA leave if the employee does not return to work. It may also be triggered if, while on leave, the employee notifies the employer that they will not return to work at the end of their leave.
  • Health Insurance Portability and Accountability Act (HIPAA) – Under HIPAA, you are required to comply with its various privacy requirements if you seek medical certification from a HIPAA-covered entity or healthcare provider.
  • Employee Retirement Income Security Act (ERISA) – ERISA prohibits employers from denying benefits to employees, which could include denying leave under your company’s leave policies to care for an elderly parent.
  • Employer’s benefits plans, CBAs – Employers are also bound by the terms of their own employee benefits plans and CBAs if they provide greater family and medical leave rights than FMLA. On the other hand, your plans, programs, and CBAs cannot diminish FMLA rights.

Source: HR Daily Advisor | Coordinating FMLA with State and Federal Laws

For more information contact info@crawfordadvisors.com. The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Preparing Yourself for an ICE I-9 Audit

Posted April 21, 2017 by Megan DiMartino

U.S. Immigration and Customs Enforcement (ICE) may not be on your radar of things to worry about, but should a disgruntled employee get them involved then you’re in for a fun I-9 audit. So to prepare yourself for an impromptu investigation, start conducting periodic audits to make sure you’re following suit.

Follow these steps to conduct your own I-9 audit:

  1. Determine whether you have I-9 forms filled out for all current employees. Should any be missing, have the employee fill out another one and date it for the current date. Do not backdate. Simply note and initial that the old document was lost and a new one was created.
  2. Correct simple errors (i.e., missing date, transcription error) by crossing out the wrong information and filling it in with the correct information. Then initial and date the correction.
    Note: Should the employer signature be missing, make sure to view the employee’s identity and employment authorization documents as the signature is an attestation to viewing the documents and that they appear to be genuine and relate to the individual.
  3. If there is an error related to an employee’s document (i.e., missing information), you will need to have the employee bring in either a List A document or a List B and C document. It is not required that the employee bring in the same documents that they originally used, just as long as it is any document(s) from the Lists of Acceptable Documents.
  4. If you are missing I-9 forms for former employees that should still exist (i.e., it has been less than three years after the date of hire or less than one year after termination), there isn’t much you can do. If you have copies of the employee’s documents or a personnel file with their information you can fix simple transcription errors. But otherwise, former employees do not need to be contacted to correct the errors.

I-9 forms of former employees should also be destroyed periodically, so set up a system for doing so as well.

Source: Business Management Daily | Would your I-9 forms pass an ICE audit?

For more information contact info@crawfordadvisors.com. The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Comp Time and Ban the Box Bills Making Their Way to Congress

Posted April 18, 2017 by Megan DiMartino

Comp Time
The Fair Labor Standards Act (FLSA) states that non-exempt employees that work more than 40 hours in a workweek are to be paid overtime at time-and-a-half. But also under FLSA, a private-sector employer cannot provide an employee or allow an employee to choose comp time in lieu of overtime pay.

A few years ago, House Republicans proposed and passed a bill to allow comp time in lieu of overtime pay, but unfortunately it never made it to President Obama to sign. But the bill is back and is currently pending in both the House and Senate which would allow a private-sector employee to elect either the time-and-a-half pay or the time-and-a-half comp time for each hour of overtime worked. So keep a lookout for the potential passing of the new Working Families Flexibility Act of 2017!

Ban the Box
Ban the Box makes it unlawful for employers to ask about criminal background checks during the application process for a job, and many states and cities, like Philadelphia, are adapting to the law.

The Fair Chance Act, which was introduced by a bipartisan group in Washington recently, would prohibit Federal agencies and Federal contractors from asking applicants about their criminal history before they have received a conditional offer, among other reasons.

When screening new employees, make sure to:

CA Blog – Update: House of Representatives Allows for Comp Time in Lieu of Overtime Pay

For more information contact info@crawfordadvisors.com. The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

HRCI & SHRM Pre-approved Crawford Advisors Webinar | Violence in the Workplace in 2017 – Are You Protected?

Posted April 14, 2017 by Megan DiMartino

Join Crawford Advisors’ Director of Crawford HR Services, Cindy Wagner, for this HRCI* and SHRM** pre-approved, complimentary, one-hour webinar as she discusses the current state of workplace violence.

Violence in our society does not only occur outside the workplace, as each year many employees are victims and perpetrators of violent acts. Homicides have become the third leading cause of fatal occupational injuries in the United States. Employers must endeavor to prevent the serious problem of workplace violence in an effort to protect employees and avoid potential employer liability.

Program content will address:

  • What is Workplace Violence
  • Techniques to Identify Potentially Violent Employees
  • Methods to Help Defuse Violent Situations
  • Workplace Security Policy
    • Provisions & Goals
  • Risk Reduction Measures

Webinar Details:

  • Thursday, April 27, 2017
  • 1:00 – 2:00pm EDT
  • No Cost to Attend
  • This webinar is open to all HR and Finance Professionals – but not to brokers, agents, TPAs and PEOs.

*The use of this seal confirms that this activity has met HR Certification Institute’s (HRCI) criteria for recertification credit pre-approval. This activity has been approved for 1 HR (General) recertification credit hours toward aPHR, PHR, PHRca, SPHR, GPHR, PHRi, and SPHRi recertification through HRCI.

**Crawford Advisors is recognized by SHRM to offer Professional Development Credits (PDCs) for SHRM-CP or SHRM-SCP. This program is valid for 1 PDC for the SHRM-CP or SHRM-SCP. For more information about certification or recertification, please visit shrmcertification.org.

For more information contact info@crawfordadvisors.com. The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

FMLA in Conjunction with USERRA

Posted April 12, 2017 by Megan DiMartino

The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) grants leave to employees who are in the armed forces much like the Family and Medical Leave Act (FMLA) grants leave to employees with members in the armed forces. They resemble each other in the following ways:

As both laws require employees to receive a certain amount of unpaid leave, USERRA requires employers to grant up to 5 years of unpaid leave to employees on active duty while FMLA requires employers to grant up to 12 weeks of leave for employees (up to 26 weeks of military caregiver leave).

  • Similar to the FMLA, employees who return from military duty are entitled – at a minimum – to be reinstated to their old job or an equivalent one.
  • The FMLA has similar benefits protections for employees who take FMLA leave as USERRA has for employees who take military leave.
  • Similar to USERRA’s discrimination provisions, the FMLA prohibits employers from discharging or otherwise discriminating against “any individual” – not just employees – for opposing a violation of the FMLA.

Other than the obvious amount of leave differences, there are a couple other distinctions:

  • All employers are required to comply with USERRA regardless of how many (or how few) employees they have.
  • There is no eligibility requirement under USERRA. Employees are generally eligible for military leave and job reinstatement regardless of how long or how many hours they have worked for the employer.

When an employee returns to work after military leave that is protected under USERRA, you have to determine if they are eligible for FMLA leave as if they were never gone. They should receive credit for the time spent on military leave for both the 12-month and the 1,250 hour requirements for FMLA eligibility.

Source: HR Daily Advisor | Coordinating FMLA with USERRA

For more information contact info@crawfordadvisors.com. The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Maryland Fair Employment Practices Act and Reasonable Accommodation

Posted April 6, 2017 by Megan DiMartino

Recently, a Maryland Federal Court allowed a trial to proceed on a case where the plaintiff is accusing their employer of not fairly accommodating her needs under Maryland’s Fair Employment Practices Act (MFEPA) in which the employer failed to perform an individualized assessment to determine whether the employee – a qualified individual with a disability – was able to perform the duties of any available position, not just her own.

In the case, Townes v. Md. Dep’t of Juvenile Svcs., Townes is diagnosed with bipolar disorder and her psychiatrist recommended she move to another position that required less travel. It was pointed out that the company did have open positions available which required less travel and, per her psychiatrist, were suitable positions which Townes was qualified to perform. One was even available in Baltimore, MD where Townes lives. So the object was if the case presented was enough that a jury could conclude that the employer performed the individualized assessment required under MFEPA of Townes’s ability to perform the duties required of “a” job and not necessarily “the” job she occupied.

In the case Peninsula Reg’l Med. Ctr. v. Adkins, the court rejected the notion that “the job in question” means the job which the employee held at the time of the request for reasonable accommodation. So with that and one of the Maryland laws (COMAR 14.03.02.05(B)(5)), which includes reassignment to a vacant position as an example of a reasonable accommodation, it helped to reinforce the court’s conclusion that the employer was required to evaluate other open positions which the employee was qualified to fill.

The Townes and Adkins cases demonstrate how Maryland courts will interpret the MFEPA’s requirements like those found in Title I of the American’s with Disabilities Act and the Rehabilitation Act. Maryland employers should obviously learn from this and have good-faith conversations (individualized assessments) with their employees in determining how they can accommodate their needs in either their current position or through a qualified transfer.

Source: Mintz Levin Employment Matters Blog | Federal Court: Maryland Fair Employment Practices Act Requires Employer to Consider Jobs Other than Employee’s Current Job When Assessing Possibility of Reasonable Accommodation 

For more information contact info@crawfordadvisors.com. The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Are Your Interview Questions Getting a Little Outdated?

Posted March 29, 2017 by Megan DiMartino

There are an endless amount of questions that an interviewer can ask a job applicant. But let’s ask you a couple questions first – Are these questions you’re asking pertinent to the open position at hand? Are they beneficial in collecting true information regarding your potential employee? If you’re asking the following questions, then the answer is most likely no:

  1. What’s your greatest weakness? – Everyone has weaknesses. A weakness is something you could be better at doing than you currently are and of course we can all strive to be better! This question can be intrusive and personal and doesn’t provide an answer that helps with the hiring decision.
  2. Where do you see yourself in five years? – This question can sometimes be a trap as interviewers want to determine if you’re a responsible adult with firm plans rather than a “child” who doesn’t have their mind made up yet. Life isn’t set in stone, so the next five years shouldn’t have to be either.
  3. What’s your greatest failure so far? – Goes right along with “your greatest weakness.”
  4. With all the talented candidates, why should we hire you? – As the interviewer, you’re the one that knows the ins and outs of the position so you’re the one who should know what to look for in a candidate. Practical questions should be asked about the work that is performed in the role in order to assess the candidate’s suitability for the job.
  5. What would your last boss say about you? – The integrity of their last boss isn’t at stake here, it’s about the applicant. Not all bosses are created equal and not every employee goes to work to please their boss, but to do their job and do it well.

These five questions have been a part of many interviews and also, whether you mean to or not, emphasize the unhealthy viewpoint that employers are mighty and job applicants are trivial.

So get rid of these out-of-date questions and replace them with these smart, thought provoking and realistic questions to use in your next interview:

  1. What can I tell you about this job or the company? – The candidate’s responses/questions will tell you a lot about their attitude level, their understanding of the role and business world in general, their priorities and their preparedness for the interview.
  2. How does this role fit into your career plans? – This will help determine if the candidate is just simply looking for a job (which may fit some roles) or if they’re serious about the position and their future with the company.
  3. As you think about yourself performing this job, what do you imagine will be the biggest challenges as you get started? – This question will make it clear if the applicant thought through the job requirements and their abilities and experiences to fill the role adequately.
  4. From what you understand about the job, which of your experiences at work or somewhere else do you feel will help you in this job? – This is a great way to obtain some evidence that the applicant can handle the position.
  5. If you take this position, how do you expect to tackle the new job and the projects we’re discussing? In a general way, what will be your plan of attack? – By asking this question you’ll get some insight as to how the candidate’s mind works and processes their potential new role.

Source: Forbes | Five Interview Questions To Stop Asking – And Five to Ask Instead

For more information contact info@crawfordadvisors.com. The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.