Tax and ERISA Implications of Employer-Provided Medical and Disability Benefits (Portfolio 330)

Description

Bloomberg Tax Portfolio, Tax and ERISA Implications of Employer-Provided Medical and Disability Benefits, No. 330, analyzes the requirements of §104, §105, §106, §220, §223, §401(h), and §420. It examines the exclusions from gross income provided by §104 for workers’ compensation and other statutory benefits, accident and health insurance benefits not financed by an employer, and damages for personal injuries; the exclusion provided under §105 for employer-financed sickness and personal injury benefits; and the exclusion provided by §106 for employer-financed coverage.

Included are analyses of the use of pension plan assets to provide retiree medical benefits under §401(h) and §420. The Portfolio also provides an overview of the rules governing Health Savings Accounts (HSAs) and Health Reimbursement Accounts (HRAs), and the treatment of long-term care insurance as amounts provided under an accident or health plan.

In addition, this Portfolio discusses the requirements of ERISA applicable to welfare benefit plans, including qualified medical child support orders, the impact of federal employment discrimination and medical and family leave legislation, and multiple employer welfare arrangements (MEWAs).

This Portfolio may be cited as Cowart, 330 T.M., Tax and ERISA Implications of Employer-Provided Medical and Disability Benefits.

Table of Contents

I. Introduction
II. Taxation of Nonemployer Financed Health and Disability Benefits Provided to an Individual
III. Taxation of Employer-Provided Sickness and Personal Injury Benefits
IV. Employer-Provided Accident and Health Coverage
V. Employer Deductions
VI. Treatment of Long-Term Care Insurance as Provided Under an Accident and Health Plan
VII. Health Reimbursement Arrangements (HRAs)
IX. Medical Savings Accounts (Archer MSAs)
X. Qualified Small Employer Health Reimbursement Arrangements
XI. Elective Continuation of Medical Coverage (COBRA)
XII. HIPAA: Group Health Plan Portability, Access and Renewability Requirements
XIII. Federal Regulation of Medical, Mental Health and Substance Use Disorder Benefits
XIV. Medicare Secondary Payer (MSP) Rules
XV. Compliance with Employee Retirement Income Security Act of 1974 (ERISA)
XVI. Compliance with Other Laws
XVIII. Employment and Severance Agreements — Effect of Health Care Law
XIX. Health Care Reform