HR Daily Advisor 12/9/2019
States and municipalities across the country ring in the new year by implementing new laws that employers must be aware of—and 2020 is no different. Effective January 1, 2020, there will be over 2 dozen new laws going into effect across 10 states and 2 laws that will impact the entire nation.
The map below highlights which states will be impacted and what the changes will entail. More information about these changes is highlighted below the map. But wait, you say—why aren’t minimum wages included in this map? There were so many minimum wage updates going into effect on January 1 that we had to create a completely different map, stay tuned for tomorrow’s post!
Federal
Defined Contribution Health Plans—A rule finalized in 2019 (84 Fed. Reg. 28888) partially reverses the Affordable Care Act (ACA) prohibition and allows health reimbursement arrangements (HRAs) to be integrated with individual coverage under certain circumstances. The rule also classifies certain other HRAs as “excepted benefits†exempt from many health plan requirements. The changes take effect for plan years beginning on or after January 1, 2020.
Funds in the new “individual coverage HRA†(ICHRA) can reimburse premiums for individual health insurance, whether offered on or off an ACA exchange, as well as Medicare coverage. A separate “excepted benefit HRA†(EBHRA) can help cover copayments and deductibles, as well as dental, vision, and short-term coverage.
For any portion of the individual health insurance premium not covered by an ICHRA, employers may offer pretax salary reduction through a cafeteria plan. This applies only to off-exchange coverage because the cafeteria plan rules prohibit the use of funds for exchange coverage.
More:
https://hrdailyadvisor.blr.com/2019/12/09/are-you-prepared-for-the-new-laws-taking-effect-january-1-2020-map/
