October 2018 Focus

Short-Term, Limited-Duration Insurance: Final Rule

Effective October 2, 2018, short-term, limited-duration plans, otherwise known as STLDI, will be extended from three months to one year, with renewal options extending up to three years of coverage. This will be appealing to those individuals seeking to fill gaps of coverage, such as waiting periods before employer-sponsored coverage begins. These plans are not ACA-compliant employer-sponsored plans; however, they could be a determining factor for departing employees as to whether they elect COBRA, as the cost is about 50% less in comparison to ACA plans.

To view the full Final Rule in its entirety, click here.

New FCRA Disclosure Notice

The Fair Credit Reporting Act (FCRA) requires the Consumer Financial Protection Bureau to provide two model disclosures: A “Summary of Consumer Rights,” which is a summary of rights to obtain and dispute information provided in consumer reports and to obtain credit scores, and a “Summary of Consumer Identity Theft Rights,” which is a summary of rights for identity theft victims. These forms should be provided to employers by the companies who conduct their background-screenings, and employers to any applicants who have any adverse-actions on record. Employers can use the Bureau's model forms or may elect to use their own forms if they are noticeably similar.

Effective September 21, 2018, the Bureau amended these notices to include information about fraud alerts and security freezes, as well as a change in the duration of initial fraud alerts from 90 days to one-year minimum to remain in a consumer’s file.

Medicare Part D Notices due by October 15th

Employers who sponsor group health care plans that include prescription drug coverage are required to notify, in writing, all Medicare-eligible individuals whether the drug coverage they have is creditable or non-creditable, based on the standard of the Centers for Medicare and Medicaid Services (CMS) Medicare Part D Prescription Drug Plan. Most carriers provide information on creditable coverage to employers through their websites, but they may also be provided through separate mailings or with annual enrollment materials. Additionally, employers must also complete a Disclosure to CMS Form to report the creditable coverage status of their prescription drug plans. This disclosure is due annually, no later than 60 days from the beginning of the plan year.