PowerNotes: December, 2011
HHS Announces End of Early Retiree Reinsurance Program
The Patient Protection and Affordable Care Act (PPACA) established the Early Retiree Reinsurance Program (ERRP). The ERRP is a temporary program that provides reimbursement to eligible employers (and employment-based plans) for part of the cost of providing health care coverage to early retirees and their families. Early retirees are those who are age 55 and older, but not yet eligible for Medicare.
The ERRP was created to encourage health plan sponsors to make coverage available for early retirees and their families, who often face difficulties finding affordable health coverage in the individual market. Under the program, plan sponsors can receive reimbursements of 80 percent of high cost claims between $15,000 and $90,000.
The ERRP became effective in June 2010. It received $5 billion in funding. The ERRP was designed to expire on Jan. 1, 2014, or earlier if the program’s funds were depleted. On Dec. 9, 2011, the Department of Health and Human Services (HHS) announced that the ERRP will end early because its funding is almost exhausted.
This Power Group Companies Legislative Brief summarizes the end of the ERRP for claims incurred after Dec. 31, 2011.
Winter Wellness
Is getting more active your New Year’s resolution or are you trying to shed those pesky holiday pounds? Winter is ripe with outdoor activities that offer a good workout. Plus, you can burn more calories exercising in winter because your body has to work hard to keep itself warm.
Flex your muscles. Snow creates plenty of opportunity for burning calories. When the fluffy stuff falls, ditch the snow blower, and shovel your driveway and sidewalk by hand. Offer to help a neighbor or family member to maximize the workout. Download Live Well, Work Well — January 2012.
In Case You Missed It
8 ways employees can use their Flexible Spending Accounts before 2012. Read the 12/7/2011 PowerMail.
Holiday Schedule
Power Group’s Overland Park office will be closing at 3pm on Friday, 12/23. Our office will be closed on Friday, 12/30, and Monday, 1/2. We will have a reduced staff on 12/23 and 12/26.
Holiday Misc.
We all have our holiday favorites, but what about the other end of the spectrum? The movie ticket website Fandango polled customers to come up with the ultimate holiday flop, and now has a list of the top 10 worst Christmas movies ever made.
- SANTA CLAUS CONQUERS THE MARTIANS 23%
- SILENT NIGHT, DEADLY NIGHT 16%
- JINGLE ALL THE WAY 10%
- JACK FROST 9%
- SANTA WITH MUSCLES 5%
- ERNEST SAVES CHRISTMAS 5%
- HOME ALONE 3 4%
- DECK THE HALLS 4%
- SURVIVING CHRISTMAS 3%
- CHRISTMAS WITH THE KRANKS 3%
Have a safe and healthy holiday season!
HHS Announces End of Early Retiree Reinsurance Program
The Patient Protection and Affordable Care Act (PPACA) established the Early Retiree Reinsurance Program (ERRP). The ERRP is a temporary program that provides reimbursement to eligible employers (and employment-based plans) for part of the cost of providing health care coverage to early retirees and their families. Early retirees are those who are age 55 and older, but not yet eligible for Medicare.
The ERRP was created to encourage health plan sponsors to make coverage available for early retirees and their families, who often face difficulties finding affordable health coverage in the individual market. Under the program, plan sponsors can receive reimbursements of 80 percent of high cost claims between $15,000 and $90,000.
The ERRP became effective in June 2010. It received $5 billion in funding. The ERRP was designed to expire on Jan. 1, 2014, or earlier if the program’s funds were depleted. On Dec. 9, 2011, the Department of Health and Human Services (HHS) announced that the ERRP will end early because its funding is almost exhausted.
This Power Group Companies Legislative Brief summarizes the end of the ERRP for claims incurred after Dec. 31, 2011.
The Power of Wellness
Is getting more active your New Year’s resolution or are you trying to shed those pesky holiday pounds? Winter is ripe with outdoor activities that offer a good workout. Plus, you can burn more calories exercising in winter because your body has to work hard to keep itself warm.
Flex your muscles. Snow creates plenty of opportunity for burning calories. When the fluffy stuff falls, ditch the snow blower, and shovel your driveway and sidewalk by hand. Offer to help a neighbor or family member to maximize the workout. Download Live Well, Work Well — January 2012.
PowerNotes: November, 2011
Supreme Court Will Review Health Care Reform Law in 2012
A number of legal challenges to the health care reform law have been filed in federal court since the law was passed in March 2010. Nearly all of the challenges have been based on constitutional grounds. So far, four U.S. Courts of Appeals – the 4th, 6th, 11th and D.C. Circuits – have ruled on challenges to the health care reform law. Two of the courts have upheld the law, one has not and one has ruled that the plaintiff did not have standing to bring a challenge.
On Nov. 14, 2011, the U.S. Supreme Court announced that it will review the health care reform law during its 2012 term. This development is significant to the fate of the health care reform law because the Supreme Court will ultimately decide whether or not the law is constitutional. It is expected that the Supreme Court will issue its decision by June 2012, which would be just over four months from the 2012 presidential election. (More.)
STATE LEGISLATIVE UPDATES
CA – California Workplace Law News
Overtime—The minimum salary levels for exempting computer software professionals, physicians, and surgeons from the state’s overtime requirements have been updated for 2012. (More.)
ME- Maine Workplace Law News
Income Tax Withholding—The Maine Revenue Services office released 2012 withholding tablesand the Supplement to Withholding Tables Booklet, 2012 Income Tax Withholding Percentage Method.
MA - Massachusetts Workplace Law News
Court Extends Massachusetts Wage Act Coverage to Out-of-State Employees
A Massachusetts superior court has ruled that the Massachusetts Wage Act protects out-of-state employees as long as they have sufficient contacts with the commonwealth. (More.)
MI- Michigan Workplace Law News
Unemployment Insurance—Employer tax rates for 2012 will continue to range from 0.06 percent to 10.3 percent; negative balanced employers, however, are assessed an additional 0.75 percent solvency tax. Delinquent employers pay an additional 3 percent, for a total of 13.3 percent. (More.)
NJ- New Jersey Workplace Law News
Wage Payment Requirements—Effective Nov. 7, 2011, each new hire must receive a written copy of a poster regarding recordkeeping requirements for wages, benefits, taxes, and other contributions and assessments. All current employees must receive a written copy of the poster by Dec. 7, 2011. (More.)
NY- New York Workplace Law News
Income Tax Withholding—For the quarter starting Jan. 1, 2012, and ending March 31, 2012, the late payment interest rate is 7.5 percent and the refund interest rate is 2 percent. (More.)
ND- North Dakota Workplace Law News
Income Tax Withholding—Employers federally required to file electronically or that file 250 or more Forms W-2 are required to file electronically. (More.)
OH- Ohio Workplace Law News
Unemployment Insurance—Employer tax rates for 2012 range from 0.7 percent to 9.1 percent, including the 0.4 percent mutual tax. Delinquent employers pay 11.4 percent. New employers pay 2.7 percent, except new construction employers pay 7 percent. (More.)
PA - Pennsylvania Workplace Law News
Philadelphia Ordinance Requires Paid Sick Time to Employees of City Contractors
While narrowed from the prior version, a newly enacted ordinance will require certain contractors operating in Philadelphia to provide their full-time, non-temporary, non-seasonal employees a certain amount of paid sick time each year. (More.)
WI- Wisconsin Workplace Law News
Income Tax Withholding—Legislation that adopted the federal income tax treatment of employer-provided health insurance benefits for nondependent adult children younger than 27 was signed Nov. 4, 2011, by Gov. Scott Walker (R). The provision is effective retroactively to Jan. 1, 2011. More information is available on the Department of Revenue website. (More.)
