August Benefits News and Posts

Are Your Employee Benefits Plans Ready for the New Year or Is It the Same Auld Lang Syne?

BY OGLETREE, DEAKENS, NASH, SMOAK & STEWART, P.C.

Holiday season and the end of the year are both quickly approaching, and with the turning of the calendar from 2021 to 2022 come several employee benefit plan amendment deadlines and implementation requirements. Some of these changes are optional for plan sponsors to adopt so now is a good time to discuss and plan for the upcoming year.

For retirement plans, hardship distribution amendments are due by December 31, 2021. For welfare plans, flexible spending account (FSA) amendments are due by December 31, 2021, and a number of the provisions of the Consolidated Appropriations Act, 2021 (CAA, 2021) need to be implemented by the plan year beginning on or after January 1, 2022.

Below is a quick year-end checklist for employee benefit plans.

Retirement Plans: Hardship Distributions

Under Internal Revenue Service (IRS) guidance for qualified retirement plans, the deadline for adopting an amendment conforming to the hardship distribution requirements of the Bipartisan Budget of Act of 2018 and the 2019 final distribution regulations is December 31, 2021. The Bipartisan Budget of Act of 2018 and the final regulations enacted several changes to hardship withdrawal rules for qualified retirement plans, including:

repeal of the required 6-month suspension of elective deferrals after a hardship distribution;
permitting amounts contributed as qualified nonelective contributions (QNECs) or qualified matching contributions (QMACs) to be available for hardship distributions;
elimination of the need to exhaust plan loans prior to taking a hardship distribution;
allowing a general standard to be used to determine if a hardship distribution is necessary to satisfy the financial needs of a participant; and
permitting hardship distributions to repair a primary residence, even if that repair would not otherwise qualify for a casualty loss deduction.

Plan sponsors also may need to adopt other retirement plan amendments by December 31, 2021, if they made plan changes during 2021.

When preparing the year-end hardship distribution amendment, for efficiency, plan sponsors may want to consider amending their retirement plans for other mandatory amendments that are not yet due. The IRS has provided additional time to adopt the host of retirement plan amendments related to retirement plan provisions of the Setting Every Community Up for Retirement Enhancement (SECURE) Act and the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Although these changes have already become effective, plan sponsors have until the last day of the first plan year beginning on or after January 1, 2022, to adopt plan amendments reflecting those provisions. For calendar year plans, these amendments are due December 31, 2022.

Welfare Plans: Healthcare and Dependent Care FSAs

The CAA, 2021 and subsequent IRS notices allow several optional changes to cafeteria plans that offer healthcare FSAs and dependent care FSAs, including the following:

allow participants to carry over all or a limited portion of their unused FSA balance from a plan year ending in 2020 or 2021 to a plan year ending in 2021 or 2022 respectively;
extend the grace period for using unused FSA balances for plan years ending in 2020 or 2021 to up to 12 months after the end of the plan year;
allow participants to make new FSA and pre-tax premium elections or revoke an existing election mid-year without a status change event for the plan year ending in 2021;
allow employees who cease participation in a healthcare FSA to spend down their account for expenses incurred after employment separation through the end of the grace period of the plan year in which the separation occurred;
increase the maximum age for qualified dependents under the dependent care FSA from 12 to 13 for the 2021 plan year; and
increase the dependent care FSA maximum from $5,000 to $10,500 for the 2021 plan year.

Plan sponsors that have implemented any of these changes must adopt a plan amendment memorializing the changes on or before December 31, 2021.

HIV PreEP Treatment Coverage

As of September 17, 2021, group health plans must cover HIV pre-exposure prophylaxis (PrEP) treatment consistent with the U.S. Preventive Services Task Force (USPSTF) recommendation without cost-sharing. The U.S. Department of Labor (DOL) recently issued answers to frequently asked questions (FAQs) providing that group health plans are required to provide coverage without cost-sharing not just for PrEP, but also for the items and services that the USPSTF recommends for participants prior to being prescribed anti-retroviral medication to determine whether the medication is appropriate, as well as for ongoing follow-up and monitoring (PrEP support services). PrEP support services include HIV testing, hepatitis testing, pregnancy testing, and adherence counseling, among other items and services, as described in detail in the DOL’s FAQs. Since this provision has already taken effect, plan sponsors will need to adopt an amendment by year-end reflecting the September 17, 2021, effective date.

No Surprises Act and Transparency in Coverage Rule

Within the past year, the DOL, U.S. Department of Health and Human Services (HHS), and the U.S. Department of the Treasury have issued guidance regarding implementation of the medical pricing and transparency rules of the CAA, 2021 that apply to group health plans. For example, the Transparency in Coverage (TiC) final rule addressed participant access to pricing information through group health plans, requiring such plans to make information regarding in-network rates and out-of-network costs publicly available. The CAA, 2021 further addressed transparency in health plan billing and rules to eliminate surprise billing in group health plans.

Because of the rapidly approaching deadline for implementation of many of the requirements of the CAA, 2021 and the TiC rule, the DOL, HHS, and the Treasury Department have issued guidance addressing, among other things, deadlines and overlap, explanations of benefits (EOBs), and good faith compliance. For example, plans must begin notifying participants of their rights relating to balance billing. The DOL’s website has a model DOL notice for posting, distribution, and including on EOBs.

The agencies also delayed implementation for certain provisions.

The following CAA, 2021 and TiC rule provisions are required to be implemented for plan years on or after January 1, 2022:

Emergency services

Group health plans that offer coverage for emergency services must provide that coverage (1) without preauthorization; (2) without regard to whether the provider is an in-network or out-of-network provider; (3) with no requirements that would be more restrictive than for in-network services; and (4) with cost-sharing for out-of-network providers no greater than if they were in-network.

Non-emergency services at out-of-network providers

Plans may not impose cost-sharing on coverage for out-of-network services greater than cost-sharing that applies to in-network services.

Gag clauses on price and quality data

Plans are prohibited from entering into an agreement with service providers that would directly or indirectly restrict the plan from: (1) providing provider-specific cost or quality of care information or data to referring providers, the plan sponsor, participants, beneficiaries, or enrollees, or individuals eligible to become participants, beneficiaries, or enrollees of the plan or coverage; (2) electronically accessing de-identified claims and encounter data for each participant, beneficiary, or enrollee; and (3) sharing either type of information, consistent with applicable privacy regulations.

Air ambulance

Under interim final rules issued on October 7, 2021, group health plans that cover air ambulance services must limit the participant’s cost-sharing for out-of-network services to the same cost if the services were provided in-network.

Independent dispute resolution

The interim final rules also provide that plans have 30 business days to negotiate payment amounts starting on the day of initial payment or notice of denial of payment. If a negotiation fails, the parties have four business days to initiate a binding arbitration process called “independent dispute resolution” (IDR). Each party submits a payment offer during the IDR process and one of the amounts is selected by the certified IDR entity. The IDR entity must choose one of the amounts submitted by the parties. The losing party has to pay the arbitration costs.

External review

The interim final rules also provide that prior external review guidance is amended to expand the scope of adverse benefit determinations eligible for external review to include determinations about plan compliance with the surprise billing and cost-sharing protections under the No Surprises Act and its implementing regulations. The interim final rules extend external review under the No Surprises Act to grandfathered plans.

The DOL also issued guidance entitled “FAQs About Affordable Care Act and Consolidated Appropriations Act, 2021 Implementation Part 49,” regarding good faith efforts to comply with the following requirements for plan years on or after January 1, 2022. The guidance includes the following provisions:

Machine-readable files

Plans are required to publicly disclose, in machine-readable files, in-network rates, out-of-network rates, and prescription drug prices. Regulations defer enforcement of the requirement until July 1, 2022, with enforcement of the requirement to publish prescription drug prices deferred pending further rulemaking.

Insurance identification cards

Physical or electronic insurance cards must now include deductible amounts, out-of-pocket maximums, and a phone number and website for consumer assistance information for plan years beginning on or after January 1, 2022. Until regulations are adopted, good faith compliance with the ID card requirements may include identifying on the ID cards the applicable major medical deductible and out-of-pocket maximum, a telephone number and website, or a Quick Response (QR) code, to access additional deductible and out-of-pocket maximum limits.

Provider directories

Beginning on or after January 1, 2022, plans must establish and periodically update a website that contains a list of contracted providers and facilities. Plans are expected to make a good faith effort to comply with this requirement. When a plan incorrectly identifies a provider as in-network, the plan will not be deemed out of compliance so long as the plan imposes cost-sharing not greater than the cost-sharing amount for a participating provider, and counts the cost-sharing amounts toward any deductible or out-of-pocket maximum.

Continuity of care

Effective on or after January 1, 2022, plan sponsors must ensure continuity of care when a plan’s contractual relationship terminates and results in changes in provider or facility network status. Plans may want to make a good faith effort to implement the requirement, pending further guidance.

The agencies have delayed the effective date for the following provisions beyond January 1, 2022:

Advance explanation of benefits (EOB)

Due to the complexities of developing the technical infrastructure for transmission of the necessary data, enforcement of the advanced EOB provisions of the CAA, 2021 is delayed until applicable regulations are adopted.

Price comparison tools

The CAA, 2021 and the TiC rule contain similar price comparison tool requirements. Enforcement of the CAA, 2021 price comparison tool requirements is deferred to align with the TiC rule enforcement schedule beginning with plan years that begin on or after January 1, 2023.

Reporting on pharmacy benefits and drug costs

Plans are required to submit an annual informal report on pharmacy benefits and drug costs with the HHS, DOL, and the Treasury Department. The new deadline for the informational report for plan years 2020 and 2021 is December 27, 2022. Subsequent reports will need to be filed no later than June 1 for the previous plan year. Plans may want to start now so they can begin reporting the required 2020 and 2021 data by December 27, 2022.

The end of the year will come quickly. Plan sponsors may want to start reviewing their plan documents now to make sure all necessary amendments are adopted before the end of 2021.

Todd BellistriNovember 15, 2021August Benefits

Why not start off this selling season leading into the holidays on the right foot? One way to do that is to finally give some thinking to smart marketing. We don’t need to be the ones to tell you it’s very competitive out there (but we will), what with tons of start ups and side hustles all over the landscape. By developing a legit marketing program you are giving yourself a true foot up on the competition. So read on, you’ll see that its not as daunting as you think and the upside is well worth it.

FROM FORBES / BY DOMINIQUE HARROCH

In today's digital landscape the right approach to small business marketing combines advanced technology, data-driven insights, and effective digital platforms. Here’s a comprehensive guide to small business marketing to companies navigate the current marketing trends and tools that can drive business success.

Key marketing tools for small businesses

Following is a summary of 11 key marketing tools that small and growing businesses should consider when leveraging owned, earned and paid media:

1. An optimized small business website

A high-performing website is crucial for marketing today. An optimized site increases your page rank on Google and other search engines, and in today's world, fewer than 1% of searches go to the second page of a search. Key elements of an effective small business site include:

Memorable domain name: Choose a name that reflects your business and is easy to recall.
User-friendly design: Ensure your site is visually appealing and intuitive. Sites should have a clear structure, intuitive navigation and information that is easy to access.
Search engine optimization (SEO): Implement SEO best practices to rank higher in search engine results.
Mobile optimization: Since over 55% of global web traffic comes from mobile devices, you’ll want to ensure your site is mobile-friendly.
Valuable content: Regularly update your site with engaging content like blogs and articles that address your audience's interests and needs.
Fast loading times: Optimize page speeds to improve user experience and SEO rankings.
Secure hosting: Use reputable hosting services to protect your site’s data and performance.

Additionally, integrating tools like Google Analytics (now called GA4) and Google Search Console (GSC) can provide valuable insights into your site's performance and user behavior.

2. Paid search engine marketing (SEM)

Paid search engine marketing, in which you pay if a keyword is clicked on that drives traffic to your website, remains a powerful tool for driving targeted traffic. Platforms like Google Ads and Bing Ads allow you to:

Bid on keywords: Use tools like Google keyword planner to select high-value keywords relevant to your business.
Control costs: Set daily and monthly budgets, and adjust bids based on performance.
Analyze performance: Track key metrics to assess and refine your campaigns.

3. Paid listings and display ads

Paid listings on platforms like Yelp, Facebook, and Pinterest can boost visibility. Use Google’s Display Network to target ads based on user interests and behavior. This approach allows you to:

Choose ad formats: Use banners, text ads, or video ads to capture attention.
Track return on investment (ROI): Monitor clicks and conversions to measure effectiveness. Track your costs, record and monitor revenue, and record all expenses. Make sure to measure lead generation numbers, customer acquisition, and sales metrics as valuable insights into your marketing effectiveness.
Testing: By experimenting with different ad copy, targeting options, and formats, businesses can identify what resonates most with their audience, refine their strategies, and ultimately improve click-through rates and conversions. This can include A/B testing, target audience variations, ad copy variations, call-to-action (CTA) testing or visual elements where you test different images or videos to determine which visual elements attract more attention and engagement.

4. Content marketing

Content marketing remains a cornerstone of effective digital strategies. Key tactics include:

Blogging: Regularly post optimized content to drive organic traffic. Nine out of ten marketers use blogs as part of their content strategy.
Guest posting: Publish articles on popular platforms such as Medium and AllBusiness.com to enhance your reach and SEO. Strive to create “evergreen” articles, which are designed to remain relevant and valuable over a long period of time, regardless of current events or trends. Unlike timely articles that focus on current news or trends, evergreen content addresses topics that have enduring interest and utility.
Video content: In 2023, individuals spent an average of 17 hours a week watching videos online. Utilize platforms like YouTube and TikTok to engage your audience.
Content platforms: Leverage content recommendation platforms like Outbrain to expand your content’s reach.

5. Social media marketing

Social media is a powerful tool for engaging with your audience. Focus on platforms such as:

Facebook: Effective for broad audience reach and targeted ads.
Instagram: Ideal for visual content and influencer partnerships.
LinkedIn: Best for B2B marketing and professional networking.
TikTok: Useful for viral video content and younger demographics.

With over 5 billion global social media users and growing, effective social media marketing can significantly enhance your brand’s visibility and engagement. To be effective, you must regularly post interesting content to obtain and keep followers.

6. Influencer marketing

Influencer marketing involves collaborating with individuals who have a significant and engaged following on social media platforms like Facebook, TikTok and Instagram to promote products or services. These influencers, who can range from celebrities to niche content creators, leverage their credibility and relationship with their audience to drive brand awareness and influence purchasing decisions.

The impact of influencer marketing on broader marketing efforts can be profound, as it allows brands to tap into authentic, targeted communities that are often more receptive to recommendations from trusted (or at least known) voices.

This form of marketing can enhance brand credibility, expand reach, and generate higher engagement rates compared to traditional advertising. As consumers increasingly seek personalized and relatable content, influencer marketing has become a powerful tool for connecting with audiences in a meaningful way.

7. Online business directories

It’s important for business owners to list their companies in prominent and reputable business directories. Often these listings are free, but even if you must pay a small fee, it can be worth it.

The benefits include

Exposure to potential clients and customers.
Boosted SEO through backlinks.
Improved online presence and brand awareness.
Increased credibility for your business.
Low-cost or free marketing.

The following is a list of top business directories to consider listing your business:

AllBusiness.com
Better Business Bureau
Facebook Page
Google Business Profile
LinkedIn
Superpages
Bing Places for Business

8. Radio marketing

While less prominent today, radio can still be effective. Many people are in their cars during peak commute hours. To maximize radio advertising:

Targeted placement: Choose stations and time slots that align with your target audience.
Engaging content: Create memorable and concise ads.
Consider your market: Are you a B2C company (business to consumer) or B2B company (business to business)? Is your market local (like a neighborhood restaurant), national (such as selling payroll services), or international (such as selling unique clothing to multiple markets)?

The cost-effectiveness of radio compared to TV makes it a viable option for more localized campaigns.

9. Press releases

Press releases are valuable for announcing significant business updates. Ensure your release is:

Newsworthy: Focus on unique and timely information.
Well-structured: Include a strong headline, key details, and contact information.
Multimedia: Incorporate multimedia elements like images and videos to increase engagement.

10. Email marketing

Email marketing remains effective when executed correctly. Best practices include:

Segmenting: Personalize content based on customer preferences and behavior. Use data to segment your lists and target markets.
Offering engaging content: Provide valuable information, special offers, and updates.
Optimization: Use A/B testing to refine subject lines and content.
Using AI-driven tools: These can help automate and personalize email campaigns, improving engagement rates.

11. Direct mail marketing

Despite the digital age, direct mail still works for certain audiences. To optimize direct mail:

Use targeted lists: Use well-researched mailing lists to improve ROI.
Implement creative designs: Ensure your mail piece stands out and is easy to read.
Track mailings: Monitor responses and effectiveness.

More tips to enhance your marketing campaigns

Here are some additional tips to optimize your marketing campaigns:

Segment: Segment your target market to a specific audience. Segmentation can be done with respect to age, gender, income level, education, geography, purchase stage or brand loyalty, and more.
Business lists: Consider using high quality business lists such as Dun and Bradstreet, Experian Business, ZoomInfo or InfoUSA. These lists can be used in multiple channels as well, maximizing the value of the lists.
Track real time: Track your marketing campaigns in real-time to get immediate insights, make quick adjustments, and understand what is working or not.
Key metrics: Track the key metrics in your campaigns, such as click-through rate, engagement rate, conversion rate, sales, revenue, customer acquisition cost, market share, and churn rate.
Software and AI: Use software and artificial intelligence (AI) tools for social media management, content creation and testing of alternative ads.
Budget: Allocate your budget wisely. Assess the performance of different marketing channels and allocate your budget to the ones that deliver the highest ROI. Continuously review and adjust your spending to focus on the most effective strategies.
Keep current: Stay updated with trends. Keep up with the latest marketing trends and technologies. Experiment with new platforms, tools, or strategies to stay ahead of the competition and reach your audience in innovative ways. Keep up to date with experts by seeking articles from reputable business sources such as AllBusiness.com.
Promote across channels: Share earned media coverage on your website, social media platforms, and email newsletters. For instance, if a major publication writes about your product, feature this article prominently on your homepage or social media profiles.
Showcase social proof: Use earned media as a form of social proof by highlighting positive reviews, testimonials, or features from reputable sources. This can build credibility and trust with potential customers.
Strengthen relationships with media: Build and maintain good relationships with journalists and influencers. This can lead to more favorable coverage in the future and expand your media network.
Repurpose content: Convert mentions and reviews into additional content, such as blog posts, case studies, and infographics. For example, if your company was featured in a popular tech blog, you could create a detailed blog post about the experience and its impact.

Ready to enhance your small business marketing strategy?

Developing a comprehensive and modern small business marketing strategy requires leveraging a mix of traditional and digital techniques. By integrating artificial intelligence tools, optimizing SEO, utilizing effective SEM strategies, and harnessing the power of social media, you can create a dynamic and effective marketing approach. Start by experimenting with different strategies, tracking your results, and refining your approach based on performance data.