3 Mid-Year Changes…
There are three important mid-year benefit changes that we wanted to make sure you understand. These are all first-time exemptions issued by the IRS and/or DOL and could offer your employees some help, depending on their situation. I’ll provide a brief overview and links with more detailed information.

1. Mid-Year Health Insurance Open Enrollment: Both Anthem and Blue Shield (as well as other carriers) are taking advantage of recent IRS rules and offering employees the ability to downgrade their health plan choice mid-year. Here is an overview of the carrier rules, please reach out to your account manager with any questions:

a. ANTHEM - Anthem will allow currently covered employees to switch to a lower priced option if one is already offered (employer currently offers multiple plans). This is not considered to be an open enrollment. This option is available for a May 1, 2020 or June 1, 2020 effective date.

b. BLUE SHIELD - Blue Shield will allow a one-time buy-down plan change off-cycle for employers and employees through June 30, 2020 with July 1, 2020 as the latest effective date. Rates for employees who choose a buy-down plan off-cycle will be based on the age of the member at the time of the change.

2. Mid-Year Section 125 (FSA) Election Changes: This IRS rule change allows employees to change both their Health and Dependent Care FSA elections mid-year. It also extends and expands several other benefits in this area. Please click the button below to view a PDF containing more information.

Another notable change is that the IRS is allowing Over the Counter medical supplies to be paid with an FSA WITHOUT a doctor’s orders. They also allow this for feminine hygiene products.

3. COBRA Election Extension: The DOL and IRS just offered significant extensions for the election and payment of COBRA much beyond the typical 60 days. Please click the button below to view a PDF containing more information from our friends at BasicOnline.

Note: There is much discussion in the House of providing COBRA’d employees with premium support much like was offered in the 2008-09 Financial Crisis. There is nothing firm at this point, but something could develop in the next week or two.

Some of these rules are mandates (COBRA Extension) and some are just options for your consideration. As always, please reach out to us with any questions.

BASIC Online COBRA Overview

IRS Issues Relief For Cafeteria Plans Due To COVID-19

As always, if you have any questions or if we can help in any way, please reach out!
Call us at (805) 687 - 3225, or send us an email at info@petersmilam.com. We can't wait to hear from you!

-Dave Peters & Steve Milam