EBIA Weekly Newsletter

Compliance at Your Fingertips: EBIA’s Benefits Compliance Library


   May 4, 2017

You can rely on EBIA to keep you up-to-date on the ever-changing compliance requirements for employee benefits. We provide expert analysis on a broad range of topics, with practical tips that will help you comply with the complex rules. Here are some of the latest enhancements to our ERISA and Group Health Plan Mandates publications: … Read More


IRS Information Letter Confirms That Health FSAs Cannot Reimburse Insurance Premiums


   May 4, 2017

IRS Information Letter 2017-0004 (Dec. 19, 2016) Available at https://www.irs.gov/pub/irs-wd/17-0004.pdf The IRS has issued an information letter confirming that health flexible spending arrangements (health FSAs) cannot reimburse premiums for Medicare or other health insurance. The letter responds to a health FSA participant’s request for information about the rules on submitting Medicare premium expenses … Read More


Substantial Increase in TPA’s Compensation Exposes TPA and Employer to Potential Fiduciary Liability


   May 4, 2017

Abraha v. Colonial Parking, Inc., 2017 WL 1052558 (D.D.C. 2017) Available at https://www.gpo.gov/fdsys/pkg/USCOURTS-dcd-1_16-cv-00680/pdf/USCOURTS-dcd-1_16-cv-00680-0.pdf A federal court has allowed ERISA claims to proceed against an employer and its health plan third-party administrator (TPA) after the TPA’s fees increased dramatically due to plan administration changes. According to the complaint filed by current and former employees, … Read More


IRS Memo Considers Limit on Annual Additions When Two Employer-Aggregation Rules Apply


   May 4, 2017

Tech. Adv. Mem. 201715001 (Dec. 27, 2016) Available at https://www.irs.gov/pub/irs-wd/201715001.pdf In this technical advice memorandum (TAM), the IRS considers how the Code § 415(c) limit on annual additions is determined when two employer-aggregation rules—the controlled group rules and the affiliated service group rules—apply. As background, Code § 415(c) limits the total contributions (annual … Read More


Must Our Health Plan Cover the Pregnancy Expenses of a Participant Who Is a Surrogate?


   May 4, 2017

QUESTION: Can our company’s major medical plan exclude coverage for the pregnancy and birth-related medical expenses of participants who act as surrogates for other individuals? ANSWER: Although the federal agencies have not issued specific guidance on this issue, at least two legal hurdles may prohibit enforcement of an exclusion from coverage for the pregnancy and … Read More