SEPTEMBER 2011       New Federal Poster Requirement Survey Says Salaries Will Increase in 2012 Protecting Against Natural Disasters ACA's Limits Not Applicable to HRAs Guidance For Group Health Plans Expanded Preventive Care Under ACA       Affordable Care Act's Annual Limit Restrictions Do Not Apply to Stand-Alone HRAs in Effect Prior to Sept. 23, 2010 The Center for Consumer Information & Insurance Oversight has issued guidance that exempts stand-alone Health Reimbursement Arrangements (HRAs) in effect prior to Sept. 23, 2010 from having to comply with the Affordable Care Act's annual limit requirements for plan years beginning before Jan. 1, 2014. Background The Affordable Care Act generally prohibits group health plans from imposing lifetime or annual limits on the dollar value of health benefits, but allows "restricted annual limits" with respect to essential health benefits for plan years beginning before January 1, 2014. Restricted annual limits may be waived if compliance with the rules would result in a significant decrease in access to benefits or a significant increase in premiums. Exemption for Stand-Alone HRAs An HRA is a self-insured medical reimbursement plan funded solely by employer contributions and not through salary reduction that: - Reimburses some or all of the medical care expenses of participating employees, spouses and dependents up to a maximum dollar amount for a coverage period; and - Allows participants to carry forward unused amounts remaining at the end of the coverage period for use in subsequent coverage periods. According to the guidance, all HRAs set limits on the amount that can be spent and those limits would always be less than the applicable restricted annual limit amounts, so applying the annual limit restrictions would result in a significant decrease in access to HRA benefits. As a result, the guidance exempts all stand-alone HRAs that were in effect prior to Sept. 23, 2010 from having to apply individually for an annual limit waiver for plan years beginning on or after Sept. 23, 2010 but before Jan. 1, 2014. If an employer that maintains an HRA also maintains other coverage, whether or not that coverage is integrated with the HRA, that other coverage must comply with the annual limit restrictions or obtain a waiver. Record and Notice Requirements Still Apply An HRA that is exempt from applying for an annual limit waiver still must comply with the record retention and annual notice requirements to participants and subscribers included in previous guidance. Back to HR, Benefits & Payroll News homepage ABOUT ASCENTIS ONLINE PAYROLL SERVICES Ascentis Payroll processes payroll in REAL TIME and provides INSTANTANEOUS AUDITING. Ascentis Blog article: What to look for in a payroll system Ascentis Payroll processes payroll in real-time, which can reduce processing time by as much as 30%. Pay periods can be calendared and scheduled in advance, and off-cycle payrolls can be easily processed. Instantaneous auditing allows you to make any corrections before payroll is run, ensuring 100% accuracy. With full integration with Ascentis HR and Ascentis Time, payroll can be run anytime and as often as needed. No more batch uploads or waiting for transmission windows, Ascentis Payroll is makes your job EASY. 1.800.229.2713  |  www.Ascentis.com  |  info@ascentis.com     Register to participate in the free Ascentis Webinar: Are you ready for a better payroll solution? SaaS is the key. Ascentis Payroll gives you the control of in-house processing with all the benefits of a SaaS solution. Join us for our Sep. webinar and see a live demo of Ascentis Payroll. CALCULATE YOUR SAVINGS: How much will your company save by automating payroll processes? Find out in less than 5 minutes. SEE AND HEAR WHAT OUR CUSTOMERS SAY: Copyright © 2011 Ascentis. All rights reserved.