Ensuring compliance with the Employee Retirement Income Security Act (ERISA) is crucial for employers to avoid hefty penalties. As we step into 2024, it’s essential to stay updated on the adjustments to penalties and ensure your health plans align with ERISA’s stringent requirements.
Key Compliance Areas for Employers:
- ERISA’s Reporting and Disclosure Rules: Regularly review your health plans to comply with Form 5500, annual Children’s Health Insurance Program (CHIP) notices, and Summary of Benefits and Coverage (SBC) requirements.
- Failure or refusal to file an annual report (Form 5500) with the DOL (unless a filing exemption applies)
- 2023 Penalty: Up to $2,586/day
- 2024 Penalty: Up to $2,670/day
Failure of a multiple employer welfare arrangement (MEWA) to file an annual report (Form M-1) with the DOL
- 2023 Penalty: Up to $1,881/day
- 2024 Penalty: Up to $1,942/day
Failure to furnish plan-related information requested by the DOL
- 2023 Penalty: Up to $184/day, not to exceed $1,846/request
- 2024 Penalty: Up to $190/day, not to exceed $1,906/request
Failure to provide the annual notice regarding Children’s Health Insurance Program (CHIP) coverage opportunities (applies to employers with group health plans that cover residents of states that provide a premium assistance subsidy under CHIP)
- 2023 Penalty: Up to $137/day/failure
(each employee is a separate violation) - 2024 Penalty: Up to $141/day/failure
(each employee is a separate violation)
Failure to timely disclose information to a state regarding group health plan coverage for an individual who is covered under a Medicaid or CHIP plan
- 2023 Penalty: Up to $137/day
(each participant or beneficiary is a separate violation) - 2024 Penalty: Up to $141/day
(each participant/beneficiary is a separate violation)
Failure by any health plan sponsor (or any health insurance issuer offering health insurance coverage in connection with the plan) to comply with requirements of the Genetic Information Nondiscrimination Act (GINA) for health plans
- 2023 Penalty:
- $137/day/participant or beneficiary during noncompliance period
- Minimum of $3,439/participant or beneficiary for de minimis failures not corrected prior to notice from the DOL
- Minimum of $20,641/participant or beneficiary for failures not corrected prior to notice from the DOL that are not de minimis
- Maximum of $688,012 for unintentional failures
- 2024 Penalty:
- $141/day/participant or beneficiary during noncompliance period
- Minimum of $3,550/participant or beneficiary for de minimis failures not corrected prior to notice from the DOL
- Minimum of $21,310/participant or beneficiary for failures not corrected prior to notice from the DOL that are not de minimis
- Maximum of $710,310 for unintentional failures
Failure to provide Summary of Benefits and Coverage (SBC)
- 2023 Penalty: Up to $1,362 per failure to provide the SBC
- 2024 Penalty: Up to $1,406 per failure to provide the SBC
Take Action Now by Ensuring ERISA Compliance in 2024
To sidestep these penalties and ensure your organization is in full compliance, proactive measures are non-negotiable. Start with a comprehensive review of your health plans against ERISA’s requirements today.
Need Expert ERISA Compliance Guidance?
ERISA compliance can be intricate, but you don’t have to navigate it alone. Our specialized services are designed to simplify compliance for your organization, ensuring you avoid penalties and stay focused on what you do best. Contact us today to ensure your health plans are ERISA-compliant for 2024 and beyond.
