Benefits Compliance Podcast: Listen to the Latest Episode
December Get Wise Wednesdays – Register Now
Reminder: It’s MLR Rebate Time Again!
State Alert: WA Paid Family and Medical Leave (PFML) 2024 Premium Rate Announced
Departments Propose New Rules for No Surprises Act Federal Independent Dispute Resolution Process
DOL Settles in ERISA Fiduciary Breach Investigation Involving Cross-Plan Offsetting
CRS Reports on Paid Family and Medical Leave in the US
Topic: 2023 Benefits Compliance Highlights and Recap
To close out the year, the Benefits Compliance team will recap benefits-related legislative, regulatory, and judicial highlights from 2023. They will also look forward to 2024 and any potential guidance that may be on the horizon.
Note: The speakers will answer as many questions as possible during the webinar. If your question isn’t answered, reach out to your advisor for further assistance.
Date/Time: December 13, 2023
3:00 to 4:00 p.m. ET
This program is pending approval for 1.0 (general) recertification credit hours toward PHR, SPHR and GPHR recertification through the HR Certification Institute. For more information about certification or recertification, visit the HR Certification Institute website at hrci.org.
Note: Those listening to a recorded webinar will not be eligible for credit.
The ACA requires insurers to submit an annual report to HHS to account for plan costs. If the insurer does not meet the medical loss ratio standards, this means too large a portion of the premiums charged in the previous year went towards the insurer’s administration, marketing, and profit, instead of going toward paying claims and quality improvement initiatives. In such case, the insurer must provide rebates to policyholders. For 2023, insurers must distribute rebates to employer plan sponsors between August 1, 2023, and September 30, 2023.
Employers should keep in mind that if they receive a rebate, there are strict guidelines as to how the rebate may be used or distributed. Generally, any portion of the rebate that is considered ERISA plan assets (e.g., the portion attributable to participant contributions) must be returned to participants in some form within 90 days of receipt.
For more information, please ask your advisor for a copy of our Medical Loss Ratio Rebates: A Guide for Employers publication.
The Washington Employment Security Department announced in October that the 2024 WA PFML total premium rate will be 0.74% of wages up to the 2024 Social Security cap of $168,600. The new rate is a decrease of the current rate of 0.8% and will become effective on January 1, 2024.
The total contribution of 0.74% is split between employers and employees, depending on the size of the employer. Employers with 50 or more employees working in the state of Washington will contribute up to 28.57% of 0.74%, and their Washington state employees will pay 71.43% of 0.74%. Employers with fewer than 50 employees working in the state of Washington are not required to contribute the employer portion of the premium. However, they must still withhold the employee premium or pay the employees' premiums on their behalf.
Employers with at least one employee working in the state of Washington should notify their employee(s) who work in Washington regarding the new 2024 rate and coordinate with their payroll vendors to update the new rate to be applied on January 1, 2024. (Employers are not allowed to retroactively withhold premiums from employees.)
Washington PFML provides medical and family leave for eligible employees. For additional information, please refer to the state’s dedicated PFML site.