Health Care Coverage and Pregnancy Disability Leave

California law was changed this year to require employers to provide continued health insurance benefits to an employee during the employee’s entire pregnancy disability leave (PDL).

Until this year, employees on PDL were entitled to continued health benefits only if the employer also provided such benefits to other employees with temporary disabilities or, if covered by the Family Medical Leave Act (FMLA), during any period of overlapping coverage with the FMLA.

To learn more about California’s pregnancy disability leave laws, register to join our employment law experts for our live Pregnancy Disability Leave and Baby Bonding webinar on May 17, 2012. 

Webinar topics will include:

• How to determine employee eligibility
• Length of leave
• When to require medical certification
• Types of wage replacement benefits
• Requests for leave and return to work
• Clarification of new 2012 laws 

2013 Health Savings Accounts and Flexible Spending Limits Announced

Health Savings Accounts (HSA) are pre-tax accounts available to individuals who are covered under a high-deductible health plan (HDHP). These accounts help employees pay for health expenses in the face of rising health insurance costs. Eligible individuals can accumulate money, tax-free, in HSAs to pay for qualified medical expenses.

To be eligible to participate in an HSA, the policyholder must, among other requirements, be enrolled in an HSA-qualified high deductible health plan with a minimum annual deductible. The Internal Revenue Service (IRS) announced an increase to that deductible amount.

For calendar year 2013, a high deductible health plan is defined as a health plan with an annual deductible that is not less than $1,250 for self-only coverage or $2,500 for family coverage. The maximum annual out-of-pocket expenses (deductibles, co-payments and other amounts, but not premiums) cannot exceed $6,250 for self-only coverage or $12,500 for family coverage.

The annual maximum HAS contribution for 2013 is:

• $3,250 for individuals with self-only coverage (an increase of $150 from 2012).
• $6,450 (an increase of $200 from 2012).

For more information, visit the IRS website. 

Updated Federal Health Benefit Coverage Requirements Tool

The U.S. Department of Labor (DOL) released an updated version of its elaws Health Benefits Advisor for Employers on April 18.

The elaws Health Benefits Advisor is a helpful tool that outlines the federal laws that can affect health benefit coverage provided by group health plans. These laws include: 

• Consolidated Omnibus Budget Reconciliation Act (COBRA)
• Health Insurance Portability and Accountability Act (HIPAA)
• Mental Health Parity Act (MHPA) and Mental Health Parity and Addiction Equity Act (MHPAEA)
• Newborns’ and Mothers’ Health Protection Act (Newborns’ Act)
• Women’s Health and Cancer Rights Act (WHCRA)
• Genetic Information Nondiscrimination Act (GINA)
• Michelle’s Law

The elaws Health Benefits Advisor also explains the legislation, statutes and regulations in Parts 6 and 7 of Title I of the Employee Retirement Income Security Act of 1974 (ERISA). Interested employers can access the updated Health Benefits Advisor for Employers from the DOL website.

The Health Benefits Advisor is one of a series of elaws (Employment Laws Assistance for Workers and Small Businesses) advisors developed by DOL to help employers and employees understand federal employment laws and resources. To access all of the elaws advisors, visit the elaws website. 

DOL Provides Tools to Help States Fight UI Fraud

The U.S. Department of Labor (DOL) announced that the Fraud Tips and Leads Gateway is now available to support state agencies in “detecting, preventing, and recovering improper unemployment insurance payments as well as combating UI fraud.”

The online portal provides state-by-state resources for reporting fraud. It also identifies strategies that DOL uses to help states address improper UI payments.

“Too many people don’t know their responsibilities under the programs, and too many businesses don’t know what’s at stake for them especially the tax implications,” said Secretary of Labor Hilda L. Solis.

According to the DOL, improper UI benefit payments are most likely to occur when:

• Recipients continue to claim benefits after returning to work;
• Employers or their third party administrators do not submit timely or accurate separation
  information; and
• Claimants fail to register with the state’s Employment Services (ES) as dictated by state law. In California, this is the Employment Development Department (EDD).

Gail Cecchettini Whaley, CalChamber Employment Law Editor/Staff Counsel

HRCalifornia members and subscribers can get more information about UI obligations for California employers by visiting the HR Library’s Unemployment Insurance page (sign in required). 

Not a member or subscriber? Learn more about how HRCalifornia can help you.

Employers Work with CalVet to Help Veteran Employees

California employers are working with the California Department of Veterans Affairs (CalVet) to help employees who are veterans take advantage of the state and federal benefits they have earned through military service.

CalVet’s growing list of employer partners includes Aerojet, Bechtel Corporation, Cintas Corporation, Comcast, Health Net Federal Services, HP, Lockheed Martin Space Systems Company, Merck, Oracle, Pacific Gas and Electric Company, Republic Services, Southwest Airlines, State Farm, TASC Inc., United Airlines, United Rentals, Verizon, Warner Bros. Entertainment, and many others in the defense, energy, technology, telecommunications, transportation, finance, health care, pharmaceutical, media, entertainment and retail industries.

Less than 15 percent of eligible California veterans take advantage of their compensation and pension benefits and only 36 percent use their health benefits, according to CalVet.

Educating Employees

With CalVet’s help, employers’ staffs are educating employees about CalVet and about other programs and services available to veterans and their families. CalVet then contacts veterans who request assistance, assesses the veterans’ needs and helps get them connected to benefits, including:

• Compensation and pension payments for a service-connected disability
• Education benefits, including free college tuition for dependents
• Health benefits, including free assistive devices, such as eye glasses and hearing aids
• Housing
• Farm and home loans
• Survivor benefits
• And many others

Besides providing information and resources, CalVet can help veterans through the often complicated and frustrating benefit application processes.

Passing Along Information

Getting the word out is one of CalVet’s biggest challenges because the agency has no marketing or media budget. CalVet turns to employer partnerships, relying on partners to expand its outreach efforts.CalVet said employers can help by placing a CalVet article in an employee newsletter or sending CalVet information to Twitter and Facebook followers and friends, and encouraging them to share the information with others.

To help employer partners connect with veteran job seekers, CalVet placed employer careers/jobs page links on the “Employment” page of the CalVet website. If pending state and federal legislation passes, employers that hire veterans may be entitled to special tax breaks or other incentives.

To find out how your organization can become an employer partner and support CalVet’s efforts to reach and assist California veterans, contact Carolyn Ballou at (916) 653-1355 or carolyn.ballou@calvet.ca.gov. 

CalChamber