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Infinisource is not satisfied merely to react to new laws or other governmental guidance. We continue to be proactive in seeking to influence legislation and regulations that impact employment-related benefits before they become final.
So far this year, we have done the following (at no additional charge to our clients, agents and other stakeholders):
- In February, we were one of only two TPAs to testify at an IRS public hearing on employers’ comparable contributions to HSAs. This hearing was on Proposed Regulations issued under Internal Revenue Code § 4980G that were published last August. Our comments focused on providing employers greater flexibility in making contributions. The Final Regulations are expected later this year.
- In March, we submitted comments to the Texas Department of Insurance on its proposed regulations of a new state law known as SB 51. Our primary stance is that this law should not apply to termination of COBRA coverage; otherwise, fully insured COBRA Qualified Beneficiaries terminated for non-payment or late payment of premiums might receive an additional 1-2 months of coverage, paid by the employer. Final rules have not been issued.
- In April, we contacted key members of Congress on important pension reform legislation (HR 2830/S 1783). The House version of this bill contains a $500 carryover for Health FSAs and make permanent many provisions of EGTRRA (i.e., revised definition of highly compensated employees, 401(k) catch-up contributions), which are due to expire in 2010. The Senate version excludes these provisions. We advocated inclusion of these provisions in the final bill when they meet in conference, hopefully in the next few months.
- Also, in April, we provided input to the IRS on what its Priority Guidance should be for its 2006-2007 planning year. Included in our recommendations were gray areas related to COBRA and nondiscrimination testing.
Infinisource continually monitors pending legislation and regulations, both at the Federal level and in many states. Where appropriate, we will continue to engage our government officials with positions that support our clients, agents and other stakeholders.
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