HR Alert: Purging Old I-9s (by HR NETwork)

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Employers often fail to shred old Forms I-9 that are beyond the retention requirement, even though this can lead to compliance liability.

Why does it matter?

U.S. Immigration and Customs Enforcement (ICE) typically gives employers only three business days to produce I-9s and associated documentation. In the mad dash of responding to this notice of inspection (NOI), employers may not have the time or resources to remove or pull out those purgeable I-9s from the documents sent to ICE. In such cases, the agency may review and consider the old I-9s in assessing paperwork fines and penalties against the employer.

Errors on forms for terminated employees are difficult, if not impossible, to correct. In the event of an ICE audit, such errors could create compliance violations that cannot be mitigated.

Timely purging is a great general risk-mitigation strategy, especially considering that a completed I-9 has much personally identifiable information, including an employee’s name, Social Security number and address.

How Long Must I-9s Be Kept?

I-9s must be retained either one year after the date of termination or three years after the date of hire, whichever is later.

Some employers have read that requirement and mistakenly interpreted it to mean that they could destroy I-9 forms of their current employees after a three-year period. But the retention period for an I-9 comes into play only after the employment is terminated.

If you use a third-party administrator to maintain the I-9 records on behalf of the company, the same retention rules apply and it is recommended that you ensure the third-party administrator have implemented a compliant retention policy said.

How Should Employers Get Rid of Old I-9s?

The National Institute of Standards and Technology recommends for destroying paper files using a cross-cut shredder.

Similarly, I-9s stored in an electronic format should also be purged using a well-documented and secure data wipe process that prevents information from later being recovered or retrieved.

What Are the Risks of Purging I-9s Prematurely?

Accidental or premature purging of I-9s can be disastrous, particularly when an employer receives an NOI from ICE demanding I-9s that no longer exist. In those instances, the employer will need to complete new I-9s as soon as possible, and even then, they still face potential liability for late-completed verifications.

Employers that purge I-9s too early and are found to be out of compliance can face penalties as high as approximately $2,300 per I-9 on average.

Bottom line: It is prudent to make a purge process part of the I-9 compliance.

For more information, please reach out to HR Network, one of our preferred partners at 714-799-1115.

Audrianne Adams Lee – Ext. 104

Visit their website at www.hrnetworkinc.com to see a list of their services they provide.

Article written by HR NETwork as of July 26, 2023.

May is Mental Health Awareness

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May is Mental Health Awareness Month, a time to raise awareness about the importance of mental health and wellbeing. Taking care of your mental health is just as important as taking care of your physical health.

Here are five tips for better mental health:

  1. Take time to re-group and re-center: Take time to do things that make you happy and relaxed, such as reading a book, taking a bath, or practicing a hobby.
  2. Connect with others: Community is important for good mental health. Spend time with friends and family.
  3. Get 7-8 hours of sleep per night: Adequate sleep is important for good mental health.
  4. Exercise on a regular basis: Physical activity can help reduce stress, improve mood, and boost overall mental health.
  5. Seek help if needed: Don’t hesitate to seek help from a mental health professional if you’re struggling with your mental health.

 

One more tip: If needed, you can call “988,” which is a suicide and crisis hotline number, similar to “911” for emergencies.  When you contact the new mental health crisis hotline number, a trained crisis worker will offer emotional support and connect you with any needed resources.

Your mental health is important and we encourage you to get the help you need.  Let’s all work together to break the stigma surrounding mental health and prioritize our mental wellbeing.

Please contact MNJ Insurance Solutions for more information and how we can help with your Employee Benefits.

What is the Difference Between an EAP vs. Mental Health Benefits?

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Mental Health is a serious matter!

Watch and share our brief video, as we explore and clarify the distinction between Employee Assistance Programs (EAP) and Mental Health benefits available in your health insurance plan.

Whether you are an employer wanting to enhance your benefit offerings or an employee seeing assistance, this video will provide you with some insights to make informed decisions about your mental health support options.

If you have any questions regarding your mental health benefits and/or resources, please reach out to MNJ Insurance Solutions.

#mentalhealthawareness #mentalhealthmatters #endthestigma

Second Rx Report Due June 1, 2023

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Health plan and health insurance issues must submit their second prescription drug data report by June 1, 2023, as part of the annual reporting requirements. Employers and insurance carriers will generally submit these reports on an annual basis no later than June 1st of each year, reporting information for the prior calendar year.

 

RxDc Compliance Guide

To comply with the RxDC reporting requirements, employers should consider doing the following:

  • Contact issuers, such as TPAs o PBMs, to ask if they will submit the report for your health plan
  • Ensure your third-party RxDC submission agreement is updated
  • Monitor the third party’s adherence to the RxDC reporting requirement for self-funded health plans.
  • Provide any information that is requested by the third party submitting the RxDC report for your health plan as soon as possible.

 

Third Party Issuers

Health plans can use third-party issuers, such as TPA and PBM, to submit an RxDc report on their behalf. Health plans may submit RxDC reports on their own, but the occurrence is uncommon. The following information outlines procedures and rules that should be considered when using an issuer:

  • A formal agreement between the plan and the third party must be constructed to address this reporting obligation.
  • The issuer, not the plan, is in violation of the reporting requirements if it fails to submit the RxDC report when required to do so.

 

General Deadlines

The initial RxDC report was due December 27, 2022, with a grace period through January 31, 2023. The first report should contain prescription drug data from 2020 and 2021. The second RxDC report should contain prescription drug data from 2022 and meet the June 1, 2023 deadline.

 

Resources

CMS.gov provides the following resources:

  • On Nov. 23, 2021, the Departments published an interim final ruleregarding the requirement to report pharmacy and drug costs.
  • Transparency in coverage FAQswere released on Aug. 20, 2021.
  • An FAQabout the submission grace period and reporting flexibilities for 2020 and 2021 data was released on Dec. 23, 2022.
  • More information, including RxDC reporting instructions, is available through the HHS’ RxDC website.
  • Prescription Drug Data Collection (RxDC) Reporting Instructions: https://regtap.cms.gov/reg_librarye.php?i=3860

 

For more information on this topic, please contact MNJ Insurance Solutions.

This Rx reporting summary is provided for informational purposes only and should not be construed as legal or a recommendation of any kind. While we have attempted to provide current, accurate, and clearly expressed information, this information is provided “as is,” and MNJ Insurance Solutions makes no representations or warranties regarding its accuracy and completeness.

COVID-19 National and Public Health Emergencies Will Terminate May 11, 2023

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While California’s COVID-19 state of emergency ended on February 28, 2023, the national COVID-19 Public Health Emergency is still active and will terminate on May 11, 2023. Consumers impacted by the COVID-19 Public Health Emergency may qualify for Special Enrollment using the “Public Health Emergency” Qualifying Life Event to enroll and make changes to their coverage.

The Department of Labor’s Employee Benefits Security Administration (EBSA) is committed to working with employers and other plan sponsors to ensure a smooth transition as the federal government unwinds some of the policies that have been in place during the COVID-19 public health emergency and National Emergency. To partner with you through this process, the Departments of Labor, Health and Human Services, and the Treasury issued guidance today in an effort to ensure that workers and their families are aware of any changes that may be coming their way:

 

As a reminder, states that administer Medicaid, such as Medi-Cal in California, were prohibited from terminating a beneficiary’s enrollment during the national COVID Public Health Emergency unless they moved out of state, became deceased, or the beneficiary requested a voluntary termination of eligibility. Beginning as of April 1, 2023, the Department of Health Care Services will begin to “unwind” this policy and resume its annual eligibility review process for members enrolled in Medi-Cal, which could possible result in a beneficiary being determined no longer eligible for Medi-Cal.  This would allow eligible individuals to enroll in a qualified health plan and possibly gain eligibility for advanced premium tax credits with a July 1, 2023 effective date.  The other option for members who lose eligibility with Medi-Cal is they could enroll in their employer group plan (if they meet the employer’s eligibility requirements), as this is a qualifying life event.  Please reference Covered California’s Public Health Emergency & Medi-Cal to Marketplace Automatic Enrollment Program Toolkit for additional program information and support materials.

 

If you have any questions or would like more information, please reach out to MNJ Insurance Solutions.

 

This summary is provided for informational purposes only and should not be construed as legal or a recommendation of any kind. While we have attempted to provide current, accurate, and clearly expressed information, this information is provided “as is,” and MNJ Insurance Solutions makes no representations or warranties regarding its accuracy and completeness.

2024 ACA Pay or Play Increasing Penalties

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On March 9, 2023, the IRS revised the penalty amounts for the employer shared responsibility (pay or play) rules under the Affordable Care Act (ACA) for 2024. For the calendar year 2024, the adjusted $2,000 penalty amount is $2,970, and the revised $3,000 penalty amount is $4,460.

 

Pay Or Play Penalty

An applicable large employer (ALE) that complies with the pay or play regulations is only subject to penalties if at least one full-time employee receives a subsidy for Exchange coverage. Employees provided affordable minimum value (MV) coverage must be qualified for these Exchange subsidies. Based on the circumstances, the pay-or-play rules allow for applying either the 4980H(a) penalty or the 4980H(b) penalty.

 

  • Under Section 4980H(a): If an ALE does not provide coverage to typically at least 95% of its full-time workers (and dependents), and any full-time worker obtains a subsidy toward their Exchange plan, the ALE will be subject to a penalty. For any applicable month, the monthly fine imposed on ALEs that do not provide coverage to almost all full-time employees and their families equals the number of full-time employees at the ALE (minus 30), multiplied by 1/12 of $2,000 (as adjusted).

 

  • Under Section 4980H(b): If at least one full-time employee receives a subsidy through an Exchange due to the ALE not providing coverage to all full-time employees, the ALE’s coverage being prohibitively expensive, or the ALE’s coverage not providing MV, the ALE may still be subject to a penalty even if it offers coverage to nearly all full-time employees (and dependents). For each full-time employee who receives a subsidy, an ALE is subject to a monthly fine equal to 1/12 of $3,000 (as adjusted) for any applicable month. Nevertheless, the 4980H(a) penalty amount is the maximum punishment for an ALE.

 

Important Dates Description
August 16, 2022 For 2023, the IRS published revised pay-or-play penalty amounts.
March 9, 2023 For 2024, the IRS published revised pay-or-play penalty amounts.
2024 Calendar year 2024 penalty amounts are based on a failure to provide affordable minimum value coverage during the 2024 calendar year

 

IRS Pay Resources

The following IRS websites are available to employers for more information and updates regarding. pay or play provisions:

 

 

This ACA Pay Penalty Outline is provided for informational purposes only and should not be construed as legal or a recommendation of any kind. While we have attempted to provide current, accurate, and clearly expressed information, this information is provided “as is,” and MNJ Insurance Solutions makes no representations or warranties regarding its accuracy and completeness.

 

*sourcehttps://content.zywave.com/file/b1f47fcf-ae5c-4d8a-a1b2-1d74f01159e9/ACA%20Pay%20or%20Play%20Penalties%20Will%20Increase%20for%202024.pdf *

Benefits of a Grandfathered Plan

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Grandfathered Plan Overview

The grandfathered plan was created on March 23, 2010, with few changes implemented since then. Plans with grandfathered status are exempt from some Affordable Care Act (ACA) regulations, but if that status is lost, the plan must adhere to more ACA criteria. An attempt by employers to scale back the benefits of plans or raise participant expenses will result in the loss of grandfathered status. So, it is essential to note that employers are limited in what changes they can make to grandfathered plans’ benefits and costs. It is also important to note that an employer can decide it makes sense to give up the plan’s grandfathered status and adhere to the new ACA standards to make more significant changes to its health plan.

 

Grandfathered Health Plans are exempt from the following ACA requirements:

Coverage of Preventive Health Services

For plan years beginning on or after September 23, 2010, certain preventive health care must be covered by company health plans and group or individual health insurance policies without requiring cost-sharing requirements. In addition, for years beginning on or after August 1, 2012, preventative health treatments for women must be offered without cost-sharing.

 

Patient Protections (for plan years beginning before January 1, 2022)

The ACA requires the following patient protections that are effective for plan years beginning on or after September 23, 2010:

  • Any primary care physician, including a pediatrician for children, who are available and participates in the plan or network must be available to enrollees.
  • Emergency services provided by group health plans and group or individual health insurance policies are not subject to increased cost-sharing or pre-authorization restrictions.
  • For OB/GYN care, corporate health plans and individual or group health insurance policies may not demand preauthorization or referral.

*For plan years beginning on or after January 1, 2022, the No surprise act (NSA) has expanded the ACA’s patient protection, which applies to protections for patients under health plans with grandfathered status.*

 

Nondiscrimination Rules for Fully Insured Plans

Once regulations are issued, fully insured plans must comply with section 105(h)(2) of the Internal Revenue Code. According to that clause, a plan and the benefits provided in the plan may not favor highly compensated people when determining who is eligible to participate.

 

Quality of Care Reporting

Reporting requirements will be implemented for group health plans and health insurance providers who provide group or individual health insurance coverage. The reports will deal with benefit and payment plans that are intended to enhance patient safety, lower medical errors, avoid readmissions to the hospital, and implement wellness programs.

 

Improved Appeals Process

For plan years starting on or after September 23, 2010, group health plans and health insurance providers that provide group or individual health insurance coverage must strengthen their internal appeals procedures and adhere to minimum standards for external reviews.

 

Insurance Premium Restrictions.

Premiums for health insurance coverage in the individual or small group market may not be discriminatory. They may differ solely by individual or family coverage, rating region, age, and tobacco use for plan years beginning on or after January 1, 2014.

 

Guaranteed Issue and Renewal of Coverage

For plan years starting on or after January 1, 2014, health insurance issuers that provide health insurance coverage in a state’s individual or group market must accept every employer and person who applies for coverage in the state. They also must renew or continue the coverage at the individual’s or plan sponsor’s discretion.

 

Nondiscrimination in Health Care

Group health plans and health insurance providers that provide group or individual insurance coverage may not discriminate against any provider practicing within their scope of practice as of January 1, 2014, or for plan years beginning on or after that date. This clause, however, does not mandate that a plan only work with agreeable providers or forbid tiered networks. In addition, plans and issuers are prohibited from treating people differently based on whether they accept subsidies or assist an inquiry under the Fair Labor Standards Act.

 

Comprehensive Health Insurance Coverage

For plan years beginning on or after January 1, 2014, health insurance issues that offer group or individual health insurance coverage need to provide the minimum set of benefits demanded of policies sold through health insurance exchanges.

 

Limits on Cost-Sharing.

For their coverage of essential health benefits, plan years starting on or after January 1, 2014, must employ a cost-sharing limit (total yearly limit) for solo and family coverage.

 

Coverage for Clinical Trials

For plan years beginning on or after January 1, 2014, group health plans and health insurance providers providing group or individual insurance coverage must allow certain enrollees to participate in specific clinical trials, with the recurring costs covered for participation. In addition, discrimination against the enrollees for the trial is prohibited.

 

Key Considerations for Employers

At each renewal, employers will need to decide whether to renew with their current Grandfathered plans or make changes to ACA plans.  It is important to know that once an employer no longer offers a Grandfathered plan or moves to a new carrier, the employer can no longer go back to the Grandfathered status. It is important to weigh all of your options, the pros and cons, at your renewal period.

If you are an employer, who still has Grandfathered plans, and are interested in a second opinion or evaluation of your benefits, please contact MNJ Insurance Solutions at (714) 716-4303 ext. 102 or sales@mnjinsurance.com.

 

This Grandfathered Plan Overview is provided for informational purposes only and should not be construed as legal or a recommendation of any kind. While we have attempted to provide current, accurate, and clearly expressed information, this information is provided “as is,” and MNJ Insurance Solutions makes no representations or warranties regarding its accuracy and completeness.

 

*source:https://content.zywave.com/file/4180adb7-d393-4c8f-9210-f99b31832eb8/Health%20Care%20Reform%3A%20What%20Are%20the%20Benefits%20of%20Having%20a%20Grandfathered%20Plan%3F%20.pdf *