Preliminary results from Mercer’s National Survey of Employer-Sponsored Health Plans 2009 indicate that nearly two-thirds of U.S. employers will shift more health benefits costs to employees in 2010.

Genetic Information Nondiscrimination Act

Effective for plan years beginning on or after May 21, 2009 for the health insurance provisions under Title I and November 21, 2009 for the employment nondiscrimination provisions under Title II (or January 1, 2010 for calendar year plans)

The Genetic Information Nondiscrimination Act of 2008 (GINA) amends ERISA to restrict the collection and use of genetic information in connection with group health benefits. Group health plans and insurers are now, generally, prohibited from imposing a preexisting condition limitation on the basis of genetic information where a genetically pre-disposed disease or disorder has not yet manifested itself. Further, discrimination in eligibility, premiums or coverage under a plan based on genetic information is also prohibited.

Michelle’s Law

Effective for plan years beginning on or after November 8, 2009 (January 1, 2010 for calendar year plans)

Michelle’s Law extends eligibility for group health benefit plan coverage to certain dependent children over the age of 18 who are enrolled in an institution of higher education. Specifically, the Law extends eligibility to those who would otherwise lose coverage when a medically necessary leave of absence causes the child to fall below full-time student status.

Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA)
Private group health benefit plans that provide mental health and/or substance use disorder benefits as well as medical and surgical benefits, are now required by this Act to do so on an equivalent basis. Several plan design requirements have been imposed on group health benefit plans that offer mental health and/or substance use disorder benefits including equity in cost sharing, treatment limitations, and coverage decisions requirements. The current mental health parity law requires parity for annual and lifetime limits on coverage, and this Act builds on those requirements.

The Internal Revenue Service (IRS) issued Proposed Regulations on Internal Revenue Code Section 125 plans, commonly referred to as “cafeteria plans,” in 2007. While it was expected that the proposed regulations would be finalized in 2008, Department of Treasury officials have informally indicated that the regulations will be finalized this year with a January 1, 2010 effective date. The Department of Labor has indicated that the proposed regulations may be relied upon now, but there are a number of provisions that require clarification before implementation by plan sponsors. This delay provides plan sponsors with an opportunity to take action now to revise plan documents, summary plan descriptions and other benefit communications in advance of the expected effective date.

The American Recovery and Reinvestment Act of 2009 provides a temporary increase in the amount that can be provided to employees tax free in the form of transit passes and/or vanpooling benefits beginning in March 2009 and continuing through December 2010. For this period, the monthly limit for transit passes and vanpooling benefits (combined) is equal to the monthly limit that applies to qualified parking expenses, thus increasing the monthly limit from $120 to $230.

The American Recovery and Reinvestment Act of 2009 signed by President Obama in February 2009, provides subsidies for COBRA premiums and special election rights for employees who lose (or already lost) coverage between September 1, 2008 and December 31, 2009. These subsidies and rights are available beginning March 1st and employers must notify affected individuals by April 13th.