Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Benefits Policy topic
No spam. Unsubscribe anytime.
HSS board adopts dependent-audit language and Section 125 plan updates
Summary
The board approved membership-rule revisions clarifying dependent eligibility audits and approved Section 125 cafeteria plan updates reflecting IRS limits and removal of universal life as a new offering; both motions passed unanimously.
At the meeting the Health Service System board approved two administrative updates: revisions to the Membership Rules clarifying dependent eligibility audits and the annual updates to the Section 125 cafeteria plan.
Mitchell Griggs, chief operating officer, described the membership-rule change to define dependent eligibility audits more clearly and to list acceptable documentation. "Audits may require submission of documentation that substantiates and confirms that the dependent's relationship with the employee or retiree is current. Acceptable documentation may include, but is not limited to current federal tax returns and other documentation that demonstrates cohabitation or financial interdependency," Griggs said.
On the Section 125 cafeteria plan, Griggs said the most material change is an increase in the maximum employees can set aside for healthcare flexible spending accounts to match annual IRS adjustments and that universal life insurance will no longer be offered to new municipal executive enrollees in 2020 because the carrier (Voya) will not issue new policies. Griggs confirmed existing policyholders can remain enrolled.
Board action: a commissioner moved to adopt the membership-rule edits and the motion passed unanimously. Later, a motion to adopt the Section 125 changes was moved and seconded and passed unanimously as recorded in the transcript.
Why it matters: the dependent-audit language sets clearer expectations for members about documentation and timing and helps the HSS support future audit cycles (staff noted a tentative re-audit in 2021). Updating the Section 125 plan keeps the system aligned with federal IRS rules and clarifies benefits availability for specific products.
Next steps: staff will incorporate clarifying language about what counts as written notification (electronic self-service vs. mailed forms) in future updates and will follow up on details about universal-life policy administration for existing enrollees if needed.
