2022 Employee Benefits Compliance Considerations
Two years after COVID-19 first made headlines worldwide, it continues to influence employee benefits, particularly in the areas of healthcare, leaves, and fringe benefits. As the issues wrought by the pandemic threaten to carry over well into the next year, it behooves employers to keep a close watch over policy changes that will affect employee benefits in 2022.
Employee benefits insurance is still an essential safeguard against potential risk exposures. But business owners should also be aware of proposed reforms that could affect healthcare and leave programs. Here are some of the more significant employee benefits concerns to look out for in the coming year:
New legislative and regulatory developments in 2022
Legislative and regulatory reforms slated for 2022 are mostly centered on three key areas:
- The Affordable Care Act (ACA)
- Paid leaves
- Public healthcare
The expansion of the Affordable Care Act (ACA) is one of the core healthcare proposals of the Biden administration. This is reflected in the passage of the American Rescue Plan Act (ARPA), which mandates the expansion and increase of marketplace plan subsidies for the ACA over the next two years. If the democratic spending bill backed by Biden passes, the subsidy increase may become permanent.
The ACA is also due for a revamp that addresses the so-called “family glitch” that effectively binds the affordability of employer plans to self-only coverage. The revision also aims to expand healthcare reforms that states can implement via innovation waivers.
Another key issue is the proposed national paid leave program. When passed into law, this program will be administered by the federal government.
In the area of public healthcare, certain progressive lawmakers are proposing a number of ambitious measures. Among these is the development of a public option plan aimed at competing with private insurance plans and the lowering of Medicare’s age of eligibility. Also in the pipeline are plans to allow Medicare to negotiate medication prices and the expansion of Medicare benefits to cover vision, hearing, and dental care.
At present, it remains uncertain whether or not these changes to the ACA will take place. Even so, there is a good chance that a major legislative package will become a reality, so businesses owners should keep track of further developments.
Top benefit compliance priorities for 2022
Many of the new developments in benefits compliance are centered on health and leave concerns. Here are some of the most crucial compliance-related concerns to prioritize in the coming year:
- COVID-related health care. As the pandemic continues to inform group health plans, employers should maintain focus on coverage mandates, relief efforts, and current communications procedures. While some employers may opt to revert to pre-pandemic programs, others may prefer to retain benefit enhancements past the mandated coverage period.
- Workplace safety. Despite the pandemic being somewhat under control in many parts of the country, employers should continue to implement a plan to ensure worker health and safety. Encouraging or requiring vaccines for returning employees may be a necessary precaution.
- Gender and family planning benefits. The passage of the Mental Health Parity and Addiction Equity Act (MHPAEA) may require employers to make changes to their benefits programs to accommodate LGBTQ workers and their families. More attention should be given to compliance with diversity, equity, and inclusion (DEI) concerns, as adherence to existing laws may no longer be sufficient. It may also be necessary to consider compliance issues regarding family planning, fertility, adoption, and surrogate benefits.
- Mental health. Employers that sponsor fully insured plans should consult with their providers for an analysis of nonquantitative treatment limitations (NQTLs) mandated by the CAA during the previous year. If full compliance hasn’t yet been achieved, it may be necessary to implement strategic measures for the interim. Businesses may also have to develop a response plan in the event of a comparative analysis request from federal organizations.
- Healthcare benefit savings and taxes. Employers may have to discontinue temporary benefits plans instituted as part of COVID-19 relief efforts unless they are made permanent by future legislation or agency regulations.
Conclusion
As you can see, maintaining employee benefits compliance for 2022 is as complex as it has ever been. Along with the new developments, there remain concerns that have carried over from the previous year to deal with.
Consultation with an insurance company with extensive benefits compliance experience is essential for protecting your business. By gaining a thorough knowledge of new laws and regulations as they come, you can help ensure your firm’s continued success and profitability.
About Daniels Insurance, Inc.
At Daniels Insurance, Inc., we have a unique understanding of the risks that businesses like yours face on a regular basis. With the backing of our comprehensive coverages and our dedication to customer service and quick claims resolution, your business will be fully protected. For more information, contact us today at (855) 565-7616.