The IRS issued Revenue Procedure 2020-36 to index the contribution percentages in 2021 for determining affordability of an employer’s plan under the Affordable Care Act (ACA).

For plan years beginning in 2021, the ACA affordability contribution percentages increased slightly to:

• • 9.83% under the pay or play rules
• • 9.83% under the premium tax credit eligibility rules
• • 8.27% under an exemption from the individual mandate

Although the individual mandate penalty no longer applies, some individuals may still need to seek this

exemption for other purposes, such as eligibility for catastrophic coverage.

Employer Takeaways

The updated affordability percentages are effective for taxable plan years beginning Jan. 1, 2021.

The slight increase in percentages from 2020 may provide some employers greater flexibility when setting employee contributions for 2021 plans.

Deutsch & Associates, LLC is here to help discuss your options.

Affordability Percentages Will Increase for 2021

Preparing for an Unprecedented Open Enrollment Period

Open enrollment following the COVID-19 pandemic will be unlike any other in recent memory. Many organizations are still trying to recover from extended closures and maintain safe working environments—open enrollment is the last thing on their minds.

Yet, procrastinating on enrollment planning can actually cause more issues than it solves. From an operational standpoint, COVID-19 might surge in the fall and force states to reclose businesses. From a personnel standpoint, employees may not be comfortable returning if they feel unsafe in the workplace. That’s why it’s critical to start thinking about a safe enrollment right now.

Employer Next Steps

Preparation will be the key factor for a successful open enrollment this year. Employers should talk to stakeholders early and prepare to answer any employee questions. Employees will need to know exactly how they will be enrolling, when enrollment is happening and where they can find help. Solidifying this information early will help keep everyone on the same page.

Speak with Deutsch & Associates, LLC to discuss an open enrollment process that meets the unique needs of your organization. Read mOre

Even before the COVID-19 pandemic, people were fighting misinformation about health conditions, vaccines and treatments online. With the pandemic constantly evolving, it may be hard to keep up and understand what’s factual and what is fake—especially if your primary source for news is social media.

It’s important to be up to date on COVID-19 guidance to understand your local regulations. Misinformation continues to spread about topics like at-home treatments, how you get infected, and what’s safe or unsafe once you go out in public.

As the number of COVID-19 infections rises across the globe, it’s important now more than ever to understand the facts and correct guidelines for protecting yourself.

Fighting the Infodemic

Public health officials say they are not only fighting a pandemic, but also an “infodemic.” Defined as an overabundance of information—both accurate and not— the infodemic makes it hard for people to find reliable guidance online or on social media.

Consider asking yourself the following questions to sort out coronavirus fact from fiction:

1. Who’s saying it? Check out not just who sent you the article or graphic, but also the author and whether it’s posted by a well-known publication. When it comes to health care, peer-reviewed journals add another level of credibility to research.

2. What proof do they have? Consider the information more credible if there are additional links or evidence in the article.

3. When was this published? It’s easy to share outdated information, especially on social media. Check the date, as the pandemic continues to quickly evolve day by day.

4. Where else is it being reported? Do a quick online search to see if trusted organizations (like the Centers for Disease Control and Prevention, the World Health Organization or local public health officials) are also reporting it.

5. Why are they saying it? Try to understand the study’s funding, which may impact its credibility. Certain organizations may have a motive or bias.

If you’re still aren’t sure, ask yourself whether you do believe the information. Trust your gut and rely on solid sources. Read More

The coronavirus (COVID-19) pandemic is still going on, despite businesses reopening. Moreover, public health officials and experts are warning of a potential second wave of COVID-19 cases.

Of course, no one knows if or when a second wave of infection will strike—or whether it will be as bad as or worse than the first wave. As such, businesses across the country should start planning today to properly prepare for a second wave of COVID-19 cases.

Here are three ways organizations can prepare:

1. Review Federal, State and Local Guidance

Businesses in one region may be able to remain open, while businesses in other regions may need to close or adjust for a second time. As such, it’s critical to understand and continually review all relevant state and local orders to determine if your business needs to take action in the face of a second wave of COVID-19 cases.

2. Review Your Organizational Risks

Even if there aren’t federal, state or local recommendations to close your business, that doesn’t mean your organization is safe from the coronavirus. Similar to conducting a risk assessment for planning to reopen following the first wave of COVID-19 cases, your organization should conduct a risk assessment in preparation for a reemergence of COVID-19 cases.

3. Maintain Workplace Safety and Communicate With Employees

There is a variety of guidance from official sources, like OSHA, to help employers maintain health and safety, and keep employees informed.

Speak with Deutsch & Associates, LLC for more workplace guidance.

Determining Whether a COVID-19 Case Is Work-related

Even as businesses reopen and employees return to their new normal, the risk of becoming exposed to and ill with COVID-19 is still present. When an employee reports they have COVID-19, employers are faced with the difficult task of determining whether the employee’s illness is work-related.

As is the case with all inherently legal issues, employers are strongly recommended to seek the guidance of legal counsel when faced with these sorts of situations.

OSHA Guidance on Work-relatedness

An injury or illness is work-related if an event or exposure in the work environment either caused or contributed to the resulting condition or significantly aggravated a preexisting injury or illness. Work- relatedness is presumed for events or exposures in the work environment.

Unfortunately, because the coronavirus is so widespread, determining whether an employee’s illness is work-related can be difficult and should be evaluated on a case-by-case basis.

Employers should ask probing questions to reveal the potential exposure of COVID-19 in their workplaces. Employers should consult with legal counsel if they are concerned about what kinds of questions they may ask.

After conducting a review, employers will need to record the incident and report it to OSHA.

Speak with us for more information related to this process. Read More

This fall, the U.S. Supreme Court is expected to hear oral arguments in Texas v. Azar, the lawsuit arguing that the Affordable Care Act (ACA) is unconstitutional.

In June 2020, President Donald Trump’s administration asked the Supreme Court to strike down the entire ACA due to the elimination of the individual mandate penalty.

The administration’s argument hinges on Congress’ decision in 2017 to reduce the individual mandate penalty to zero. According to the White House, removing that provision invalidated the entire law.

If the remaining provisions of the ACA are upheld without the individual mandate penalty, then little will change from the current state of affairs.

If the ACA is struck down, nearly everyone in the country will be affected, but the specific impact is unknown.

The ACA’s provisions remain in place while the case is being considered.

It is expected that the Supreme Court will issue its ruling in spring or summer of 2021. Stay tuned for further updates. Read More