DOL’s 2024 Penalty Adjustments

Ed MacConnell

The Department of Labor (DOL) has released its annual adjustments for 2024, impacting penalties for employee benefit plans. Here’s a quick guide for employers: Key Points: 1. Employee Notices: Private employers must ensure timely delivery of required notices (SBC, CHIP, SPD, etc.) to avoid civil penalties. 2. Form 5500 Filings: File Form 5500 accurately and on time to prevent penalties associated with non-compliance. 3. Document Requests from EBSA: Respond promptly to document requests from EBSA to avoid potential penalties. Annual Penalty Adjustments for 2024 The updated penalties listed below are applicable to ERISA-covered health and welfare plans. Compliance is essential in 2024—act now to secure your organization against penalties and… Read More

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Health Insurer Ordered to Stop Selling in Washington

Ed MacConnell

Medova Healthcare, which sold illegal insurance plans through chambers of commerce, has agreed to stop selling in Washington, according to the Office of the Insurance Commissioner. The company also agreed to a $310,000 suspended fine, according to the OIC. It operated in 38 states including Washington and served 35,000 employees nationwide. Medova sold health insurance plans to almost 140 small businesses in the state, covering 1,487 employees, through chambers of commerce. One of them mentioned in the OIC investigation was the Lakewood Chamber of Commerce. The chamber did not respond to inquiries. The health plans were marketed to small businesses as traditional insurance plans, but they were self-funded Employment Retirement… Read More

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Is my group subject to ERISA or ERISA Exempt?

Ed MacConnell

Many clients often ask the question ” Do I need to comply with ERISA? ” The answer is almost always yes! Just because you are a smaller business does not exempt you from ERISA. This from the US Department of Labor: ERISA applies to private-sector companies that offer pension plans to employees. This includes businesses that: Are structured as partnerships, proprietorships, LLCs, S-corporations and C-corporations. No matter how your employer has structured his or her business, it is covered by ERISA if it is a private entity. Who is not subject to ERISA?In general, ERISA does not cover group health plans established or maintained by governmental entities, churches for their employees, or… Read More

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