Welcome to the
Brooker Insurance Agency
Health Benefits Newsletter
Greetings!
Welcome to the inaugural issue of the Brooker Insurance Agency - Health Benefits Newsletter. This newsletter is dedicated to providing you with up-to-the-minute information on the latest changes brought on by implementation of the Affordable Care Act (ACA), and the short and long-term impact these changes will have on your business. *
At Brooker Insurance Agency, we are committed to providing you with the information and resources you need to navigate the ever-changing landscape of health care reform. **
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Limits on Health FSA Contributions
New Limits Imposed on Salary Reduction Contributions to
Flexible Spending Accounts (FSA)
Effective for plan years beginning on or after January 1, 2013, the amount of salary reduction contributions to a health flexible spending account (FSA) is limited to $2,500 annually, adjusted for inflation. An amendment to a written cafeteria plan reflecting this change may be adopted at any time through the end of calendar year 2014.
The $2,500 limit does not apply to contributions or amounts available for reimbursement under other types of FSA's, health savings accounts (HSA's), or health reimbursement arrangements (HRA's), or to salary reduction contributions to cafeteria plans used to pay an employee's share of health coverage premiums.
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Employer Notice Requirements
Availability of Health Insurance Exchanges
UPDATE: The U.S. Department of Labor has delayed the original March 1, 2013 deadline for employers to provide employees a written notice regarding the existence of a Health Insurance Exchange and details about the options provided through the Exchange. The timing for distribution of these notices is expected to be late summer or fall of 2013. Employers are not required to comply with the requirement until further guidance is issued.
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Reporting of Employer-Sponsored Health Coverage on Tax Form W-2
Beginning with calendar year 2012 Forms W-2 (required to be furnished to employees in January 2013), employers that provide a group health plan to employees and who have not been granted transitional relief generally must report the cost of the coverage provided to each employee annually. The amount reported does not affect tax liability, as the value of the employer excludible contribution to health coverage continues to be excludible from an employee's income, and is not taxable. Note: This requirement does not apply to employers that were required to file fewer than 250 Forms W-2 for the preceding calendar year, unless and until the IRS publishes further guidance giving at least 6 months advance notice. For additional information about transition relief and which employers may be eligible for exemption from this reporting requirement, please visit IRS.gov . |
For More Information......
Health Care Reform Resources (links)
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Summary of Benefits (SBC) Notice Requirements
 Final rules have been issued relating to the requirement under Health Care Reform that group health pans provide participants and beneficiaries a Summary of Benefits and Coverage (SBC) containing specific information about the plan and coverage, and a uniform glossary of terms commonly used in health insurance coverage, as well as notice of material modification of the terms of the plan or coverage. Special Update: The U.S. Department of Labor has released a new set of FAQ's (Frequently Asked Questions) which address a number of issues relating to the new Summary of Benefits and Coverage (SBC) notice requirements under Health Care Reform. To access the Department of Labor website, please click on the following link: Summary of Benefits FAQ's . |
Brooker Insurance Agency 
The Brooker Building, 10749 Pearl Road
Strongsville, Ohio 44136
Phone: (440) 238-5454
Toll Free: (800) 722-0055
Jamie Debenham
Vice President, Employee Benefits
Cheryl Bruyere
Commercial Sales Account Executive
cbruyere@brooker-ins.com
Karen Potoczak
Health Benefits Manager
kpotoc@brooker-ins.com
* The content in this newsletter is provided solely for informational purposes. It is not intended as and does not constitute legal advice. The information contained herein should not be relied upon or used as a substitute for consultation with legal, accounting, tax and/or other professional advisors.
** Content provided through PrimePay/HR360. PrimePay is a nationally recognized industry leader servicing the payroll industry and specializes in the optimization of payroll processes, HR and work force needs, and insurance and benefit management. For more information about PrimePay, please click Here . HR 360 is the leading publisher of Human Resources intelligence for businesses large and small. HR360's online library is a repository of actionable information and guidance that enables employers to manage and maintain their staffs while complying with ever-changing employment laws, rules and regulations. For more information about HR360, please click Here .
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Health Reform Rule Expands Coverage for Essential Health Benefits
Mental Health, Substance Abuse Benefits Expanded
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The U.S. Department of Health and Human Services has finalized a key health care reform rule which outlines standards for a core package of benefits -- called "essential health benefits" -- which health insurance issuers must cover both inside and outside the health insurance exchanges. The rule, which takes effect January 2014, essentially expands coverage for mental health and substance abuse disorder services, including behavioral health treatments. |
What you need to know aboutRestrictions on Annual Limits
For plan years starting on or after September 23, 2010, plans will not be permitted to impose lifetime limits on coverage. The law also restricts the use of annual limits. Plans issued or renewed beginning September 23, 2010, will be allowed to set annual limits no lower than $750,000. This minimum limit will be raised to $1.25 million beginning September 23, 2011, and to $2 million beginning on September 23, 2012. Beginning in 2014, plans may not impose annual limits on coverage. Waivers for the annual limit rules are available to limited benefit plans through 2013.
Note: Stand-alone HRA's that were in effect prior to September 23, 2010 are exempt from the annual limit restrictions for plan years beginning before January 1, 2014.
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Brooker Insurance Agency
Employee Benefits Division
We provide the highest quality professional services to our clients.
Our highly trained and experienced professionals are well versed in the complex and ever changing area of group and individual health care benefits. You can expect expert guidance, excellent communication and dedicated support with personal service.
Our goal is to make the process of offering employee benefits less stressful on your human resources department. We partner with you throughout the year to help administer and service your benefits program - from start-up through renewals, and everything in between. Call us today to discuss your company's current benefits plan. |
Brooker Insurance Agency
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