2024 Compliance Checklist for Skilled Nursing and Assisted Living Facilities

As we step into 2024, it's crucial to ensure that your facility is not just providing top-notch care but also keeping an eye on your benefits compliance regulation. Here's a quick Compliance Checklist to keep your facility on track and avoid hefty fines this year.

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Affordable Care Act (ACA) Reporting:

The ACA necessitates that organizations offer affordable insurance with essential coverage and file the requisite forms within specific deadlines. For Q1 of 2024, ensure the following:

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• By February 28, 2024, file 1094-C and 1095-C forms if submitting by paper.
• March 1, 2024, is the deadline to distribute 1095-C forms to employees. Remember, 2024 is a leap year, so the usual deadline shifts accordingly.
• April 1, 2024, marks the E-File Deadline for 1094-C and 1095-C forms. Special attention should be paid to California-specific requirements.

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Who needs to comply? Facilities employing 50 or more individuals providing essential health coverage. Looking for a low-cost ACA compliance solution specifically designed for low-wage employees? Compass provides products that are ideal for $8-$20 per hour full/part-time employees, seasonal and 1099 staff throughout the nation.

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Nondiscrimination Testing:

This IRS requirement ensures that there's no favoritism towards higher-paid or key employees within consumer-driven health plans.

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• Conduct pre-testing by December 31 of the previous year.
• Initial and final mid-year testing should be carried out by May 31 and August 30 (plan year), respectively.
• By January 31 of the following year, perform final testing.
• If any discrepancies arise, consult a benefits attorney by February 15 (subsequent plan year).

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ERISA Compliance:

ERISA imposes standards for retirement and health plans. Facilities with 100+ employees in ERISA plans must maintain specific standards and disclosures.

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• Ensure that your reporting and disclosures are up to date and compliant with ERISA requirements.

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WRAP Documents amp; SPDs:

A WRAP document combines multiple benefits into a single plan, and the SPD (Summary Plan Description) communicates the details in understandable language.

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• Verify that the SPD WRAP meets ERISA guidelines and distribute it as required.
• Remember that noncompliance could lead to fines of up to $110/day per participant and potentially trigger an audit by the DOL.

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Premium Only Plans (POP):

Allow employees to pay insurance premiums pre-tax, which can offer tax savings to both the employer and employees.

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• Ensure that the POP document, or the “rulebook” for your plan, is current and compliant with the IRS Section 125.
• Review and update your POP document regularly, especially with changes in employer information, benefit options, or new legislation.

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Form 5500 Filing:

An annual report that details the benefit plans offered by the employer.

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• Employers with 100+ employees in ERISA plans must file this form annually.
• Be aware that noncompliance can result in fines of up to $2,400 per day.

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Remember, rejected form 5500s are treated as not filed, and subject to penalty assessment by the DOL.

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Best Practices for Compliance:

1. Maintain a calendar with all compliance deadlines and testing dates.
2. Regularly review and update all your compliance documents, including SPDs, WRAP documents, and POP documents.
3. Consult with a benefits attorney to ensure all your plans meet the nondiscrimination requirements.
4. Educate your employees about their benefits and any changes that may occur throughout the year.
5. Stay abreast of new regulations and legislative changes that might affect your compliance status.

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Wrapping Up:

Compliance is an ongoing process, and it's important to not just meet the minimum requirements but to fully understand the implications and purposes behind these regulations. By following this checklist, you can ensure that your facility is not only providing the best possible care but is also operating within the legal frameworks, thus safeguarding your business against potential penalties and legal issues.

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This checklist is intended to guide and inform. Always seek professional legal advice to ensure your facility's compliance with all applicable laws and regulations.

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Stay compliant, stay informed, and here's to a successful and penalty-free 2024 for your facility! Questions or concerns? Contact Nick Cianci at [email protected] .

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