Large Group Benefits Consulting
Large Employer Health and Ancillary Benefits
We are Dickerson Employee Benefits Large Group Benefits Consulting. We are licensed nationwide and partner with agents and their clients to provide health insurance benefits to employers of all sizes and from a wide variety of industries including the education, hotel/resort, hospital and non-profit sectors.
Legislative Updates
Second COVID-19 stimulus package includes amendments to Flexible Spending Accounts for Employers and Employees.
Congress has finally passed the second COVID-19 stimulus package titled the COVID-Related Tax Relief Act of 2020 (COVIDTRA) and the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (TCDTR), both part of the Consolidated Appropriations Act, 2021 (CAA, 2021). Furthermore, Donald Trump signed the bill into law on December 27, 2021. The newly approved stimulus package includes multiple provisions, including ones for employer benefits. In addition to direct stimulus payments to Americans who qualify for relief, it also includes more aid for Paycheck Protection Program (PPP) Loans. Including but not limited to new additions to the PPP Loan, businesses are now allowed to deduct expenses associated with their forgiven PPP loans.
Regarding employer benefits directly, the bill also addresses Flexible Spending accounts and allows for more flexibility for the unused amounts that employees weren’t able to utilize. The stimulus bill allows employers to adjust the plan no later than the last day of the first calendar year beginning after the end of the plan year. This means that any changes made to the 2020 plan year must be adopted on or before December 31, 2021. Employers who choose to change the rules for their employees’ FSA Accounts must make the change by the applicable deadline and effectively communicate the changes to their employees.
For more details on the stimulus package, click here.
IRS Maintains Health FSA Contribution Limit for 2021, Adjusts Other Benefit Limits
On October 26, 2020, the Internal Revenue Service (IRS) released Revenue Procedure 2020-45, which maintains the health flexible spending account (FSA) salary reduction contribution limit from 2020, which is $2,750, for plan years beginning in 2021. Thus, for health FSAs with a carryover feature, the maximum carryover amount is $550 (20% of the $2,750 salary reduction limit) for plan years beginning or ending in 2021. The Revenue Procedure also contains the cost-of-living adjustments that apply to dollar limitations in certain sections of the Internal Revenue Code. Click here for more.
Industry News
Amazon Launches Pharmacy Prescription Fulfillment Service
Amazon announced the much-anticipated launch of its new prescription fulfillment service, Amazon Pharmacy. The offering permits users to purchase prescription medications using Amazon.com, a new convenience that may upend the pharmacy industry. It also includes free, two-day shipping for Amazon Prime members. Customers are required to sign up for Amazon Pharmacy and set up a profile by providing basic information. Users will be prompted to list current medications as well as health conditions or allergies that may conflict with prescriptions. Click here to visit the site.
