CHIPRA – another day, another employer notice!

Posted on Feb 22, 2010 in Health Care Reform

On February 4, 2009, President Obama signed the Children’s¬†Health Insurance Program Reauthorization Act of 2009 (CHIPRA, Pub. L. 111-3). CHIPRA includes a requirement that the Departments of Labor and Health and Human Services develop a model notice for employers to use to inform employees of potential opportunities currently available in the State in which the employee resides for group health plan premium¬†assistance under Medicaid and the Children’s Health Insurance Program (CHIP).

On February 4, 2010, the DOL provided a model notice for use by employers with group health plans, in accordance with the Children’s Health Insurance Program Reauthorization Act of 2009 (CHIPRA).

CHIPRA requires employers offering group health plans to notify all employees of their potential CHIPRA rights to receive premium assistance under a state’s Medicaid or CHIP program.

The requirement applies to employers that offer medical care benefits in any of 40 states that currently provide premium assistance. The 10 states that do not currently provide premium assistance are: Connecticut, Delaware, Hawaii, Illinois, Maryland, Michigan, Mississippi, Ohio, South Dakota and Tennessee.

Employers must send the notice annually, starting with the first plan year after February 4, 2010. For plan years from February 4, 2010, through April 30, 2010, the initial notice deadline is May 1, 2010. For plan years starting after May 1, 2010, the notice deadline is the first day of the next plan year.

Get the EBSA sample CHIPRA notice HERE

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2010 HSA and 401(k) Contribution Limits

Posted on Feb 13, 2010 in Industry & Legislative News

Each year the plan contribution limits change for qualified plans, so here are the new amounts for 2010:

2010 401(k) limits:

  • 401k Elective Deferrals: $16,500
  • Catch-up Contribution Limit: $5,500
  • Annual Compensation Limit: $245,000
  • Highly Compensated Employees: $110,000

2010 non-401(k) related limits:

  • 403(b)/457 elective deferrals: $16,500
  • SIMPLE Employee deferrals: $11,500
  • SIMPLE Catch-up deferral: $2,500
  • SEP Minimum Compensation: $550
  • SEP Annual Compensation limit: $245,000
  • Social Security Wage Base: $106,800

2010 Health Savings Account (HSA) Contribution Limits

For calendar year 2010, the limitation on HSA contributions for an individual with self-only coverage under a qualifying high deductible health plan is $3,050.

For calendar year 2010, the limitation on HSA contributions an individual with dependent coverage under a qualifying high deductible health plan is $6,150.

The Catch-up contribution limit for HSA contributions for individuals over age 55 is $1,000.

Remember, the funds in a Health Savings Account are used to pay for un-reimbursed qualifying medical expenses. Un-used funds carry forward each year, and at age 65 can be used for retirement income.

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