January 2009

From the editors of CCH's BENE and BAN products, here are hot topics from recent Employee Benefits Management Directions newsletters as well as recent explanatory updates in Employee Benefits Management. Also included are recent explanatory updates to the Benefits Answers Now product.

If you have any comments/suggestions concerning the information provided or the format used, we'd like to hear from you. Please contact me at tulay.turan@wolterskluwer.com.

Hot Topics in Employee Benefits Management:

Department of Labor publishes final FMLA rule, Employee Benefits Management Directions newsletter, Issue No. 433, December 2, 2008 – The first revision to the Family and Medical Leave Act regulations since enactment of the 1993 law was published by the Department of Labor’s Wage and Hour Division in the Federal Register. The revisions address the definition of “continuing treatment” of a serious health condition, notice obligations for employers, and employee notice rules and certifications. The final rule also contains changes that reflect Supreme Court and lower court rulings.

Revised FMLA rules enact new military family leave provisions, Employee Benefits Management Directions newsletter, Issue No. 433, December 2, 2008 – In addition to addressing issues related to the definition for “continuing treatment” of a serious health condition, notice requirements and medical certification, among others, the final FMLA regulations implement the new military leave provisions signed into law by President George W. Bush in January 2008.

Mental health and substance abuse treatment, financial requirements must be on par with medical coverage under new law, Employee Benefits Management Directions newsletter, Issue No. 434, December 16, 2008 – After languishing in legislative limbo for years, expanded mental health parity provisions have become law. The new law does not require employers to provide mental health coverage. Rather, it expands on earlier requirements for those plans that do offer mental health benefits. To find out the details of the new law, CCH, a Wolters Kluwer business, interviewed Catherine Atkins, Staff Attorney, California Association of Marriage and Family Therapists (CAMFT).

IRS extends deadline for FSA, HRA debit cards, Directions, Employee Benefits Management Directions newsletter, Issue No. 434, December 16, 2008 – The IRS has extended the deadline for the use of health FSA and HRA debit cards at stores that do not meet the requirements of previously-issued guidance contained in IRS Notice 2007-2. The IRS previously stated that, after December 31, 2008, the cards could not be used at a store with the Drug Stores and Pharmacies merchant category code unless 90% of the store’s gross receipts during the prior taxable year, taken on a store location by store location basis, consisted of items which qualified as expenses for medical care under Code Sec. 213(d), and unless the store participated in the inventory information approval system, described in IRS Notice 2006-69. That deadline has now been extended through June 30, 2009.

What's New in Employee Benefits Management:

FMLA regulations – The final regulations are at ¶700,050. In addition, the explanations at ¶68,050 through ¶68,063 have been updated.

FMLA forms – Along with the final FMLA regulations, the DOL issued new FMLA forms. The forms are at ¶251,365 through ¶251,374.

2009 standard mileage amounts – The standard mileage rates are at ¶150,535, ¶150,565, and ¶150,595.

What's New in Benefits Answers Now (BAN):

Department of Labor publishes final FMLA rule
The first revision to the Family and Medical Leave Act (FMLA or Act) regulations since enactment of the 1993 law was published by the Department of Labor's Wage and Hour Division (DOL) in the Federal Register. The FMLA allows eligible employees a total of 12 weeks of job-protected, unpaid leave during the year to care for a newborn or sick child, spouse or parent, or to recover from their own serious health condition. The final regulations will be effective on January 16, 2009. To find out more about new FMLA regulations, see ¶31,010, ¶31,030, ¶31,070, ¶31,080, ¶31,090, ¶31,095, ¶31,100, and ¶31,180.

Revised FMLA rules enact new military family leave provisions
The final FMLA regulations also implement the new military leave provisions signed into law by President George W. Bush in January 2008. The National Defense Authorization Act (NDAA) for Fiscal Year 2008 (P.L. 110-181) included provisions amending the FMLA to allow for two types of military leave: (1) military caregiver leave; and (2) leave for qualifying exigencies for families of National Guard and Reserves. More information about the NDAA can be found at ¶31,270 and ¶31,275.

IRS extends December 2008 deadline for FSA, HRA debit cards
The IRS has extended the deadline for the use of health FSA and HRA debit cards at stores that do not meet the requirements of previously-issued guidance contained in IRS Notice 2007-2. The IRS previously stated that, after December 31, 2008, the cards could not be used at a store with the Drug Stores and Pharmacies merchant category code unless 90% of the store's gross receipts during the prior taxable year, taken on a store location by store location basis, consisted of items which qualified as expenses for medical care. That deadline has now been extended through June 30, 2009. See the discussions at ¶23,615 and ¶73,160 for more information about using a debit card with an HRA or FSA.

9.8 million enrolled in consumer-directed health plans this year, EBRI finds
Enrollment in consumer-directed or high-deductible health plans eligible for a tax-preferred savings account increased to 9.8 million adults this year, with participants more likely to have higher incomes and be in better health than those with traditional health coverage, according to survey results released by the nonpartisan Employee Benefit Research Institute (EBRI). In addition, the fourth annual survey found that those in consumer-directed and high-deductible plans exhibited more cost-conscious behavior in their health care decision making than individuals with traditional health insurance. Results of the EBRI Consumer Engagement in Health Care Survey appear in the November 2008 EBRI Issue Brief. Find out more about CDHPs at ¶21,100.

IRS announces 2009 standard mileage rates
The Internal Revenue Service has issued the 2009 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning January 1, 2009, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be: 55 cents per mile for business miles driven. To learn more about the 2009 mileage rates, see the discussion at ¶70,580.