checklistNEW YORK—Numerous statutory and regulatory changes affecting employee benefit and compensation plans have become effective in 2010, and employers should take steps now to ensure compliance with those provisions before December 31, 2010.

The following is a checklist of key compliance issues for 2010:

Health Care Reform

Many of the new requirements of this landmark legislation become effective in 2011.

All plans (including grandfathered plans) have changes to implement, including:

• Coverage for dependents up to age 26;
• Elimination of lifetime benefit limits;
• Restriction of annual benefit limits;
• Elimination of pre-existing condition exclusions for children under 19;
• Over-the-counter medications no longer eligible for reimbursement; and
• Limitations on a plan’s ability to rescind coverage.

For non-grandfathered arrangements, additional requirements include:

• New claims and appeals procedures;
• Required coverage of preventive services;
• New nondiscrimination rules; and
• Other patient protections.

Several of these new healthcare requirements will not only require employers to amend plan and enrollment materials, but also distribute new notices. Some of the new notice requirements include:

• Grandfathered plan notice;
• Age 26 dependent coverage notice;
• Lifetime limit notice; and
• Patient protection (primary provider, OBGYN care, etc.) notice.

Cafeteria Plan Amendments

Consistent with the changes made under healthcare reform, most cafeteria plans will need to be amended before year-end to take into account expanded definitions of “dependent,” and to remove the ability to be reimbursed for over-the-counter medications.

—Hedley Lawson, Contributing Editor

Source: Michael E. Pietzsch, Pietzsch, Bonnett & Womack, Pa.  USBenefitsLaw.com