Newborns' and Mothers' Health Protection Act (10/20/2008) 
Final regulations for the Newborns' and Mothers' Health Protection Act were released on October 20, 2008. In general, the final regulations do not change the interim final rules in place since October 27, 1998. However, the text of the final regulations clarifies that the definition of attending provider does not include a plan, hospital, managed care organization, or other issuer. The text also makes a small clarification with respect to state law applicability. In addition, the final regulations make minor clarifications to the notice requirements for nonfederal governmental plans. The final regulations allow notices to be included either in the plan document that describes benefits, or in the type of document the plan generally uses to inform participants and beneficiaries of plan benefit changes. These final regulations also specify that any time a plan distributes one or both of these documents after providing the initial notice, the applicable statement must appear in one or both of these documents.

IRS Notice 2008-02: Qualified Reservist Distributions from Health FSAs (10/14/2008)
The IRS issued Notice 2008-82 which provides guidance on Section 114 of the Heroes Earnings Assistance and Relief Tax Act of 2008 (the HEART Act) enacted in June 2008. The HEART Act amended Section 125 of the Internal Revenue Code of 1986 (IRC) to allow distributions of unused amounts in a Health Flexible Spending Arrangement to reservists ordered or called to active duty. In addition to providing guidance on “qualified reservist distributions” or QRDs, the Notice provides a transition rule allowing plans to be retroactively amended for QRDs made before January 1, 2010.

HR 2851: Michelle's Law (10/9/2008)
HR 2851 prohibits a group health plan from terminating coverage of a dependent child due to a medically necessary leave of absence from a post-secondary education institution or any other change in enrollment at that institution that commences while such child is suffering from a severe illness or injury and causes the child to lose full-time student status before the earlier of: (1) one year after the first day of the medically necessary leave of absence; or (2) the date on which coverage would otherwise terminate under the terms of the plan. Continuation of coverage requires certification by the child's attending physician.

HR 6983: Mental Health Parity and Addiction Equity Act (10/3/2008)
HR 6983, also known as the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008, requires group health plans that provide both medical and mental health benefits to do so at the same levels. The law bans employers and insurers from imposing stricter limits on mental health conditions than it does for other health conditions. For additional summary information, refer to Insight, Volume 12, No. 6.

IRS Section 132(f) Bicycle Commuter Benefits (10/2/2008)
IRS Section 132(f) was amended to expand the types of commuter expenses eligible for reimbursement to include those associated with commuting by bicycle. The plan will allow employers to reimburse employees up to $20 per month, tax free, for reasonable expenses related to their bike commute. For additional summary information, refer to Insight, Volume 12, No. 6.

Americans with Disabilities Act Expanded (9/25/2008)
The Americans with Disabilities Act (ADA) was expanded with new, broadened definitions of disability that take effect on January 1, 2009. Under the broadened definition, employers may no longer take into account mitigating measures, such as an employee's use of medication to control a disabling condition, when determining whether the individual is substantially limited in a major life activity. The Act also lowers the bar in other ways for determining whether a person is substantially limited in a major life activity or "regarded as" disabled. California, New York and New Jersey have historically defined disability more broadly than federal law; however, the Act's expanded standards may now be broader than state or local law. Employers may want to review their guidelines for determining disability and consult legal counsel for any applicable situations.

Tax-Dependent Status of Children of Divorced Parents (8/18/2008)
IRS Revenue Procedure 2008-48 allows some exceptions to the IRS policy regarding children of divorced or separated parents. Generally, children whose parents are divorced or separated are considered the dependent of the custodial parent. Under the new procedure, the IRS will treat a child as a dependent of both parents for purposes of determining employer-provided medical expense reimbursements; employer-provided coverage under an accident or health plan; deductions for medical expenses; Archer Medical Savings Accounts; Health Savings Accounts; and certain fringe benefits that qualify as no-additional-cost services or qualified employee discounts. Taxpayers may apply the new rules in any taxable year beginning after Dec. 31, 2004, as long as the period of limitation on credit or refund has not expired as of the effective date of the Procedure, August 18, 2008. 

Medicare Secondary Payer Mandatory Reporting Requirements (8/1/2008)
Currently, health insurers and third party administrators (TPAs) are asked to voluntarily submit data to CMS identifying situations where the group health plan is secondary to Medicare. The Medicare, Medicaid, and SCHIP Extension Act of 2007 has been expanded to require reporting to the CMS on a quarterly basis. The effective date for is January 1, 2009 for reporting health plan data and July 1, 2009 for all other programs. Plan sponsors should request adequate assurance in writing that their insurers or TPAs are assuming responsibility for the data collection and reporting process and should ensure that the cost and responsibility is clearly stated in any service agreements.

HR 493: Genetic Information Nondiscrimination Act (5/21/2008)
HR 493 prohibits a group health plan from adjusting premium or contribution amounts for a group on the basis of genetic information.

Family Medical Leave Act Amendments (1/28/2008)
The Family Medical Leave Act (FMLA) law was amended on January 28, 2008 to provide two new leave entitlements to eligible specified family members: (1) Up to 12 weeks of leave for qualifying exigencies arising out of a covered family member's active military duty, and (2) Up to 26 weeks of leave in a single 12-month period to care for a covered service member recovering from a serious illness or injury. Eligible employees are entitled to a combined total of up to 26 weeks of all types of FMLA leave.