With annual enrollment season fast approaching, now is the time to consider 2010 welfare plan changes. We have discussed each of these changes in detail in past issues of Benefits in Brief. Thus, the following is just a brief reminder of the new requirements, with the relevant effective date for each:
- Mental Health Parity – Effective for plan years beginning on and after October 2, 2009 (January 1, 2010, for a calendar-year plan), group health plans must provide mental health and substance abuse benefits on substantially the same terms as medical/surgical benefits. The new requirements will likely require sponsors to amend their plans to remove any separate frequency limits that had applied to mental health and substance abuse benefits (e.g., outpatient visit limits or hospital stay limits), as well as to equalize the deductibles and coinsurance levels that apply to mental health and substance abuse benefits. (Please see our November 2008 article for additional details on the new Mental Health Parity requirements.)
- Michelle’s Law – Effective for plan years beginning on or after October 9, 2009 (January 1, 2010 for a calendar-year plan), group health plans must permit dependent children who lose their eligibility as a “student” due to a “medically necessary” leave of absence to continue their coverage for up to 12 months. This may require plan sponsors to update their plan documents, summary plan descriptions, enrollment materials, and other employee communications. (Please refer to our November 2008 article for additional details on Michelle’s Law.)
- Genetic Information Nondiscrimination Act (GINA) – Effective for plan years beginning after May 21, 2009 (January 1, 2010, for a calendar-year plan), group health plans and insurers are prohibited from restricting enrollment or adjusting premiums for the group on the basis of genetic information. They will also be limited in the extent to which they may request information concerning an employee’s genetic information – including family medical history – before enrolling the employee in a health plan. (Please refer to our July 2008 article for additional details on GINA.)
- HIPAA Privacy and Security– Effective February 17, 2010, the HIPAA Security Rule will be directly applicable to business associates. Additionally, the HIPAA Privacy Rule contains an expanded right to request restrictions on the use or disclosure of protected health information. Health plan sponsors may need to review and update their notices of privacy practices, review and update their privacy and security policies and procedures, review their plan documents, amend their business associate agreements, and provide updated training to their workforce. (Please refer to our March 2009 article for additional details on these HIPAA changes.)
- Children’s Health Insurance Program Reauthorization Act (CHIPRA) – By February of 2010, the DOL and HHS are expected to issue model notices by which employers may notify employees of the potential availability of premium assistance under the Children’s Health Insurance Program (CHIP). Employers will have to provide these notices by the first day of the plan year after the model notices are issued. (Please refer to our February 2009 article for additional details on these CHIP changes.)