Hylant
 
Employee Benefits Update – September 2017

COURT ORDERS EEOC TO RECONSIDER WELLNESS RULES

The U.S. District Court for the District of Columbia has issued a ruling affecting the Equal Employment Opportunity Commission's (EEOC) final wellness rules. In AARP v. EEOC, the court directed the EEOC to reconsider its final wellness rules under the Americans with Disabilities Act and the Genetic Information Nondiscrimination Act. The final rules allow employers to offer wellness incentives of up to 30 percent of the cost of health plan coverage. The court held that the EEOC failed to provide a reasoned explanation for adopting the incentive limit. Rather than vacating the final rules, the court sent them back to the EEOC for reconsideration.

THE HIGH PRICE OF HIGH-COST CLAIMANTS

The American Health Policy Institute (AHPI) defines high-cost claimants as employees or covered dependents who cost their health plans $50,000 or more a year. But according to a 2016 AHPI study, they cost more like $123,000 on average and thereby account for 31 percent of total spending. Take a look at a few more facts relative to high-cost claimants. More importantly, ask how we can help you develop a strategic cost-savings plan for your benefits program.

EMPLOYEES WANT MORE THAN MEDICAL INSURANCE

In MetLife's most recent Employee Benefit Trends Study, 59 percent of interviewees agreed a holistic approach to benefits drives company loyalty. Talk to us. Make sure your benefits program is both well-rounded and budget-conscious.

PERMISSIBLE MID-YEAR SECTION 125 CHANGES

With open enrollment season approaching, here is an overview of the events that trigger a permissible mid-year change under section 125 of the Internal Revenue Code. Note that employers are not required to allow all or any of these changes but the changes you do allow must be stated in your plan document. Additionally, most changes must be made on a prospective basis, other than adding dependents onto the plan for birth, adoption or placement for adoption.


Hylant
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Toledo, OH 43604
419-255-1020

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