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Quick Tip: Medical Loss Ratio (?Ç£MLR?Ç¥) Rebate as Compensation under the Retirement Plan

Many employers received rebates from their insurance companies this year under the Patient Protection and Affordable Care Act.?á Any employers that returned all or a portion of the rebate to participants should (i) review the definition of ?Ç£compensation?Ç¥ for their qualified retirement plans to determine whether the rebate amount would be ?Ç£compensation?Ç¥ for purposes of the plan; and (ii) work with their payroll departments or outside payroll providers to ensure that these rebate amounts are properly coded for retirement plan purposes.

Failure to Provide COBRA Election Notice Results in Judgment Against Employer

A former employee who did not receive a COBRA election notice for her dental insurance after she terminated employment was awarded a statutory penalty, attorneys?ÇÖ fees and costs in her subsequent lawsuit.?á After the former employee called the vice president responsible for human resources regarding her missing COBRA election notice, the benefits coordinator was instructed to mail the COBRA notice. ?áThe benefits coordinator, who had been in the position for a few weeks, maintained that she then mailed the COBRA notice but did not have a clear memory of doing so and there was no evidence that the notice was ever mailed.?á The employer?ÇÖs benefits manager and vice president who supervised the benefits coordinator did not follow up to ensure that the notice was sent. ?áThe former employee maintained she never received the notice.?á The court found that it could not credibly conclude that the failure to send the COBRA… Continue Reading

November 2012
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