premiums Archives - Bim Group

The COBRA Payment Process

August 21, 2017

COBRA, Compliance Alert, Health Care Costs, IRS

The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) allows qualified beneficiaries who lose health benefits due to a qualifying event to continue group health benefits. The COBRA payment process is subject to various rules in terms of grace periods, notification, premium payment methods, and treatment of insignificant shortfalls. Grace Periods The initial premium payment […]

What You Need to Know about Health Flexible Spending Accounts

August 14, 2017

Employee Benefits, Flexible Spending Account, Health Savings Account, IRS

A health flexible spending account (FSA) is a pre-tax account used to pay for out-of-pocket health care costs for a participant as well as a participant’s spouse and eligible dependents. Health FSAs are employer-established benefit plans and may be offered with other employer-provided benefits as part of a cafeteria plan. Self-employed individuals are not eligible […]

IRS Memo on Fixed Indemnity Health Plan Benefits Tax Treatment

January 24, 2017

Cafeteria Plan, Compliance Alert, Employee Benefits, Health Care Costs, IRS

On January 20, 2017, the IRS released a Memorandum on the tax treatment of benefits paid by fixed indemnity health plans that addresses two questions: Are payments to an employee under an employer-provided fixed indemnity health plan excludible from the employee’s income under Internal Revenue Code §105? Are payments to an employee under an employer-provided […]