Take Action Now to Amend Cafeteria Plans and COBRA Practices

In the past two weeks, Congress and the President have enacted two new laws affecting employers’ health and welfare plans.  Both laws require employers to respond with immediate action. They include:

2009 CHIP – Cafeteria Plan Amendment Required
Stimulus Act – Need to Notify Individuals and Change COBRA Practices

Employers and all those involved in administering group medical plans will be scrambling to understand and comply with these new requirements by the deadlines. The Stimulus Act also made changes to HIPAA privacy and security rules and an increase in the monthly limit for transit passes and vanpools. Employers should also analyze these new provisions and determine whether any changes to their benefit programs and documents are required.

To read the entire news alert, please click here.