Compliance Roundup: Recent ACA Decisions and COVID-19 Updates

Supreme Court Upholds Contraceptive Mandate Exemptions

In a 7-2 decision, the Supreme Court of the United States ruled in favor of continuing to allow exemptions from the Affordable Care Act’s requirement that contraceptive coverage be provided at no cost. An employer with a "sincerely held religious or moral objection" to providing such coverage may qualify for an exemption or accommodation.

HHS Finalizes ACA Nondiscrimination Regulations

The Department of Health and Human Services (HHS) issued its final rule under Section 1557 of the ACA, which prohibits discrimination on the basis of race, color, national origin, sex, age, or disability in certain health programs or activities. The final rule eliminates costly notice obligations which would have imposed significant paperwork burdens on covered entities. (Most employer-sponsored health plans are not covered entities under the final rule, but if unsure, plan sponsors may wish to verify their covered entity status.)

Agencies Release Further COVID-19 Guidance

The Department of Labor (DOL), Internal Revenue Service (IRS), and HHS issued another round of frequently asked questions concerning the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The guidance clarifies COVID-19 diagnostic testing coverage, modifications to the Summary of Benefits and Coverage (SBC), telemedicine relief, grandfathered plan status, mental health parity compliance, wellness program waivers, and individual coverage health reimbursement arrangement (ICHRA) notifications.

IRS Releases FFCRA Wage Reporting Guidance

The IRS released Notice 2020-54, specifying steps employers must follow to report sick and family leave wages paid under the FFCRA on 2020 Forms W-2 or via a separate statement.

We’re here to help.

As always, American Fidelity is committed to providing you with up-to-date information on employee health and welfare benefits compliance.

To help you navigate new rules regarding COVID-19, we have established our COVID-19 Frequently Asked Questions to keep you informed about the impact of these regulations and will continue to update our resource page as new guidance is released.

You are also invited to join us for a webinar about the impacts of COVID-19 on ACA compliance and potential penalty risk. You can register on our website.