Benefits Buzz: Supreme Court Rejects Challenge to Individual Mandate | No Changes Expected for 2021 ACA Reporting
Supreme Court Rejects Challenge to Individual Mandate
On June 17, 2021, the U.S. Supreme Court rejected a lawsuit challenging the constitutionality of the Affordable Care Act’s (ACA) individual mandate in a 7-2 ruling.
This lawsuit was filed in 2018 by 18 states as a result of the 2017 tax reform law that eliminated the individual mandate penalty. In 2012, the U.S. Supreme Court had upheld the ACA on the basis that the individual mandate is a valid tax. With the penalty’s elimination, the appeals court in this case determined that the individual mandate is no longer valid under the U.S. Constitution.
The Supreme Court’s Ruling
The Supreme Court determined that the plaintiffs in this case did not have standing to sue, meaning that they have not shown that they suffered any injury as a result of the elimination of the individual mandate penalty and, therefore, do not have a legal right to sue. As a result, the ACA as it exists today will remain in place.
According to the Court, allowing a lawsuit “attack[ing] an unenforceable statutory provision [to continue] would allow a federal court to issue what would amount to ‘an advisory opinion without the possibility of any judicial relief.'”
The Court did not make any determinations on any other issue in the case, including the validity of the individual mandate or whether the rest of the ACA can be severed from the individual mandate provision. However, this case is now concluded and the ACA will remain in place.
No Changes Expected for 2021 ACA Reporting
As a result of the Supreme Court’s ruling, all existing ACA provisions—including the pay or play rules and related reporting requirements—remain in place. This means that employers must continue to comply with all applicable requirements, or may face penalties for any failure to comply.
Applicable large employers (ALEs), as well as employers that sponsor self-insured plans, must report health coverage information to the IRS and to their employees annually, as applicable, under Internal Revenue Code (Code) Sections 6055 and 6056.In late May, the IRS released draft 2021 forms for reporting under Code Sections 6055 and 6056. Draft instructions have not yet been released.
No substantive changes were made to the draft forms for 2021 reporting. As a result, the information required to be reported is expected to remain the same as it was for 2020.
• 2021 draft Forms 1094-B and 1095-B are draft versions of forms that will be used by self-insured plan sponsors that are not ALEs to report under Section 6055.
• 2021 draft Forms 1094-C and 1095-C are draft versions of forms that will be used by ALEs to report under Section 6056, as well as for combined Section 6055 and 6056 reporting by ALEs who sponsor self-insured plans.
For more information about these items, read our Benefits Buzz newsletter, and contact Evolution of Benefits today.
Cybercrime and Benefits Plans; Health-related Productivity Costs | Benefits Breakdown – July 2021
Cybercrime and Benefits Plans
There is a cyberattack every 39 seconds, according to recent estimates from the University of
Maryland. Data breaches and cyberattacks are daily headlines—and employee benefits plans
are no exception to those threats. In fact, employee benefits plans are even more vulnerable
as the coronavirus pandemic continues. Organizations and benefits providers are relying
heavily on electronic access, ultimately creating new vulnerabilities.
Learn more and take action – view the full newsletter below.
Health-related Productivity Costs
While offering health coverage and benefits for employees and dependents is a major
business expense, lost productivity due to physical and emotional health problems can be
much more expensive for employers. To combat lost productivity, employers can consider:
• Offering health fairs, screenings and health risk assessments
• Addressing conditions that affect many employees
• Integrating health benefit strategies with wellness initiatives
• Designing a benefits package to support ideal behaviors
If an employer doesn’t address employee health care needs, the workplace is far more likely
to experience the negative effects of diminished productivity. However, if the organization
can commit time and funds to help employees get and stay healthy, it can reduce medical and
pharmacy costs and increase worker productivity.
Learn more and take action – view the full newsletter below.
EEOC Updates Guidance on COVID-19, Vaccines and the ADA
ADA Rules Still Apply but Do Not Prevent Safety Measures
Employers must follow ADA rules while observing emergency guidelines issued by federal, state and local health authorities during the pandemic
Click here to view and download the latest HR Compliance Bulletin and learn the details
EEOC Issues New FAQs on COVID-19 Vaccine Programs & Incentives – HR Compliance Bulletin
The EEOC’s new FAQs clarify, among other things, that employers may:
- Require employees who will be physically entering the workplace to be vaccinated, as long as certain requirements are met;
- Offer to provide vaccinations to employees on a voluntary basis;
- Offer incentives for employees to receive COVID-19 vaccinations, as long as the incentives are not coercive;
- Offer to provide vaccinations to employees’ family members on a voluntary basis (but may not require or provide incentives for family members’ vaccinations).
Mandatory Vaccines and Reasonable Accommodations
Employers with mandatory vaccination programs must provide reasonable accommodations for individuals who refuse the vaccine due to disability, pregnancy or religion.
Click here to view and download the latest HR Compliance Bulletin
Benefits & Me – June 2021
Understanding Accident Insurance
Whether you suffer a concussion falling off a ladder or dislocate your shoulder moving the couch, injuries can lead to costly medical care, loss of work time and various other related expenses. If you don’t want to be caught financially unprepared to handle an accident, consider accident insurance.
Regular medical insurance won’t cover all the expenses that result from an injury. At the very least, you will likely owe a deductible and copays. Accident insurance acts as a safety net to help you pay out-of-pocket medical and nonmedical costs resulting from an accident or injury.
Accident insurance might cover the following occurrences:
• Injuries, such as fractures, burns, concussions, cuts, eye injuries, broken teeth and paralysis
• Medical services and treatments, such as ambulance rides, emergency care, nonemergency care, hospital stays, physician follow-ups, therapy services, surgery and medical testing
• Family lodging and travel needs related to an accident and follow-up care
Contact your HR manager to learn more about accident insurance.
The Importance of Preventive Care
Seven out of 10 Americans die each year from chronic diseases, many of which are preventable. When preventive care is used and illnesses and diseases are caught early enough, you can avoid or better control your health problems. Preventive care is a type of health care used to shift the focus of health care from treating sickness to maintaining wellness and good health. Prevention includes a healthy lifestyle, exercise, diet, laboratory tests, counseling and immunizations. Preventive care can save you money as follows:
- Lowering the long-term cost of managing disease helps catch problems in the early stages when the disease is more readily treatable. The cost of early treatment or diet or lifestyle changes is less than the cost of treating and managing a chronic disease or severe illness.
- Preventive care is covered in full by health insurance.
To prevent more serious problems later, schedule your regular health screenings and evaluations today.
Benefits Debit Cards
Benefits debit cards are a valuable asset if you participate in flexible spending accounts (FSAs), health savings accounts (HSAs) or health reimbursement accounts (HRAs). These cards allow you to easily pay for health and medical expenses with the swipe of a card.
These convenient transactions are made possible by an Inventory Information Approval System (IIAS), which allows a retailer to automatically verify eligible FSA and HRA purchases through their own inventory control system (e.g., UPC or SKU number).
The following locations accept benefits debit cards:
• Health care, dental and vision providers
• Retailers with an IIAS
• Health care-related retailers that have an IIAS or sell mainly medical care items
June HR Brief: Protecting Teams from Burnout; EEOC Opens EEO-1 Reporting Portal for 2019 and 2020 Data
- The portal for private-sector employers to submit equal employment opportunity (EEO-1) workforce data from 2019 and 2020 is now open, the U.S. Equal Employment Opportunity Commission (EEOC) recently announced. The deadline for submissions is July 19, 2021. This data collection was previously delayed due to the COVID-19 pandemic.
- Burnout is a commonly discussed issue amid the COVID-19 pandemic. Oftentimes, it’s HR’s responsibility to help employees cope with burnout and its contributing factors. In many cases, that leaves HR teams without lifelines of their own. However, HR professionals can take steps to stay afloat when feeling overburdened.
June’s Live Well Work Well Newsletter – Outdoor Exercise Safety Tips, Gardening Benefits, and 3 Ways to Snack Smartly
As we move into summer, many will want to exercise outdoors to stay active and get some fresh air. That’s great news, as experts recommend at least 150 minutes of moderate aerobic activity each week. Working out in hot and humid weather can put extra stress on your body; however, there are simple precautions you can take to protect yourself.
Workout Tips
By moving your workout outdoors, you can boost your mood and improve your concentration. Also, you don’t need to stick to your own yard or neighborhood. Jogging trails, exercise parks, sports fields and stairs provide endless opportunities to switch up your workout.
Keep in mind the following tips to safely exercise outside during the summer:
• Avoid the hottest part of the day. If possible, plan your workout before 10 a.m. or after 3 p.m. to dodge those strong sun rays.
• Wear light-colored clothing. Dark colors absorb the heat, while light colors will reflect the sun.
Lightweight, loose-fitting clothing will help air circulate and keep you cool.
• Apply sunscreen. Opt for a broad-spectrum sunscreen that’s at least 30 SPF. Reapply every two hours, even if the label says it’s sweatproof. Wearing a wide-brimmed hat can also protect your face from sun exposure.
• Stay hydrated with water. Drink water before you head out, and try to take sips every 15 minutes during your workout—whether you’re thirsty or not.
• Replenish your electrolytes. Instead of reaching for a sports drink after a workout, consider replacing electrolytes through real food like chia seeds, kale, coconut, or fruits and vegetables.
• Listen to your body. If you’re feeling dizzy, faint or nauseous, stop immediately. Sit down in the shade and drink some water until you’re feeling better.
Your body may need to adapt to outdoor workouts, so follow its lead and gradually pick up the pace or intensity. As always, talk to your doctor before you start a new exercise regimen.
Health Benefits of Gardening
It’s likely that you may already have a garden. According to the Garden Media Group, 16 million people started gardening during the pandemic.
As we enter the growing season, gardening is a great way to spend time outdoors—and get some exercise. The Centers for Disease Control and Prevention counts activities like raking and cutting grass as light to moderate exercise—while shoveling, digging and chopping wood are vigorous exercise.
In addition to physical activity, consider these health benefits of gardening:
• Increased vitamin D levels essential for body functions
• Boosted self-esteem
• Improved mood
• Reduced stress and anxiety
Talk to your doctor to learn more about ways to manage your well-being.
3 Ways to Snack Smartly
It’s completely normal to snack throughout the workday. However, it can especially be tempting to opt for the fast, easy (but unhealthy) option if you are working from home. Keep the following three tips in mind to help you snack smartly during the workday at the office or at home.
- Plan your snacking. Think ahead so you don’t desperately reach for unhealthy items. At the beginning of the week, make or pre-portion your healthy snacks so they’re ready to go.
- Be mindful of portions. Avoid eating directly out of the bag or original container, and portion your snacks before eating.
- Choose healthy snacks. Nibble on fruits, vegetables, whole grains and healthy fats to stay satisfied and full. Pass on the junk food since chips, candy and cookies can leave you feeling sluggish.
View and download the latest Live Well, Work Well newsletter
Alzheimer’s and Brain Awareness Month
Alzheimer’s is a form of dementia that progressively erodes memory and creates behavioral problems. It currently affects an estimated 5.5 million people, with the vast majority being age 65 or older. However, the true number of undiagnosed cases is unknown. Sadly, there is no known cure for this disease, but there are organizations dedicated to finding one.
With that goal in mind, the Alzheimer’s Association raises awareness and funds to help research the disease, and care for and support those affected by it. If you or a loved one are living with signs of Alzheimer’s, or if you’re interested in finding ways to spread awareness, visit www.alz.org for caregiving resources and information.
Take Action
Awareness only goes so far toward improving your health—you also need to take action. Use this section to track your weekly progress as you establish your healthier lifestyle.
Week 1 (5/30-6/5) – Create a wellness plan
What do you want to improve this month? Set a short-term health goal and a plan for achieving it.
Week 2 (6/6-6/12) – Get started
Are you ready? Begin your plan and stick to it.
Week 3 (6/13-6/19) – Look for improvement
How are you doing? Think about what’s working with your plan and if you need to adjust it.
Week 4 (6/20-6/26) – Keep going
Are the adjustments helping? Continue with your revised plan and finish the month strong.
Week 5 (6/27-7/3) – Reflect
Did you reach your goal? Consider what worked with the plan and what should change next month.
Take action: View and download the latest National Health Observance newsletter – PDF
HR Compliance Bulletin: DOL Updates Q&As on COVID-19 and the FMLA
Highlights
Serious Medical Condition
Employees may be entitled to leave for their own or a family member’s COVID-19 illness if it constitutes a “serious medical condition” under the FMLA.
FFCRA Leave Enforcement
The DOL will enforce the FFCRA for leave taken or requested between April 1, 2020 and Dec. 31, 2020.
Extension of FFCRA Tax Credits
The American Rescue Plan Act extended tax credits for employers who voluntarily provide FFCRA leave through Sept. 30, 2021.
Child Care Leave
Federal law does not mandate leave to care for a healthy child. The FFCRA required leave for certain COVID-19-related child care through Dec. 30, 2021.
Testing Before Returning to Work Employers may require a COVID-19 test before employees return to work from FMLA leave if it is nondiscriminatory.
Click here to view and download the latest HR Compliance Bulletin
Illinois Expands Sick Leave Act for Personal Care of Family Members
Workers may use their sick leave for relatives’ medical, hygiene, nutrition and safety needs, and for related transportation and emotional support.
Client and Employee Resources
The more your employees understand your benefit plans the more they become educated, empowered consumers. The programs you provide will also gain an enhanced value.
As your strategic partners in employee benefits, we can provide multiple avenues of ongoing support, including:
- Employee Meetings (English and Spanish)
- Webcasts
- Payroll Stuffers
- Poster Campaigns
- Newsletters
Carrier Directories
E-Verify is a web-based system that allows enrolled employers to confirm the eligibility of their employees to work in the United States. Click the image below to begin.
