Representation and Warranties Insurance (R&W) is a type of insurance policy purchased in connection with corporate transactions. It covers the indemnification for certain breaches of the representations and warranties in the transaction agreements. R&W policies are designed to provide additional flexibility in addressing these obligations, for example, by reducing or eliminating the need for an […]
Question: When may an employee continue to cover a disabled child under the health plan after the child reaches age 26? Compliance Team Response: Most employer-sponsored group health plans permit employees to cover disabled children beyond age 26 under certain conditions. Eligible Post-Age 26 Disabled Children: Fully Insured Plan If the plan is fully insured, […]
Question: What are the issues with employers offering group health and welfare plan benefits to independent contractors? Compliance Team Response: Offering group health and welfare plan coverage to independent contractors in most cases will not be a realistic option because it would create a MEWA. Offering Coverage to Independent Contractors Creates a MEWA A multiple […]
Last month, I was invited to attend Peter Diamandis’ Abundance 360 Conference. Created in cooperation with Singularity University, A360 is Diamandis’ unique summit for a curated group of CEOs, entrepreneurs, executives, and investors to discuss some of the most exciting developments happening in disruptive technology and innovation. Topics ranged from machine learning to synthetic biology […]
Question: Which plan options must the employer offer to COBRA qualified beneficiaries? Compliance Team Response: Threshold Issue: Only Covered Individuals Experience COBRA Qualifying Event An individual must be covered under the group health plan—and experience a qualifying event while covered by the plan—to be eligible for COBRA coverage as a qualified beneficiary. Individuals who are […]
Question: When does an employer need to enter into a HIPAA business associate agreement (BAA) with an outside service provider for the plan? Compliance Team Response: HIPAA Business Associate Defined A HIPAA business associate is a third-party that creates, receives, maintains, or transmits PHI for any of the following services: Claims processing or administration Data […]
Earlier this month, ABD hosted a roundtable and panel discussion called “Conscious & Unconscious Bias in Our Lives and in the Workplace,” at San Francisco’s Olympic Club. The event featured leaders from academia, technology companies, nonprofits, and consulting agencies who have been champions of diversity and inclusion in their organizations and in their industries at […]
This is the fourth installment in the ABD M&A Advisory series titled “Finding the Upside in the Downturn” In 2007, I worked for an insurance broker that worked exclusively with private equity firms and portfolio companies. I vividly remember a meeting we had in mid-2007 to plan our marketing calendar for the next twelve months. […]
Question: How does an employee’s change to a full-time position during the initial measurement period affect eligibility for medical coverage? Compliance Team Response: Reminder: Very Different Approach Depending on Measurement Method There are two different approaches for an applicable large employer (ALE) subject to the ACA employer mandate pay or play rules to determine employees’ […]
Question: Can a child’s tax-dependent, employment, marital, student, or any other status other than age affect medical plan eligibility? Compliance Team Response: The ACA has made any status of that type irrelevant for purposes of a child’s eligibility for the employer’s medical plan. ACA Age 26 Mandate: General Rule The ACA requires that a health […]
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