How To Set Up A Wrap SPD Plan Document For Just $99 To Avoid The ACA $110 Penalty

The ERISA Wrap SPD plan document requirement has been around for years. It’s the Department of Labor’s (DOL) document for communicating plan rights and obligations to participants and beneficiaries of employer-sponsored group health insurance plans.


Wrap SPD Plan Document


It wasn’t until January 1, 2014, when the Affordable Care Act (ACA) added many new employee notification requirements, and stiff new $110 per day/per participant fines for non-compliance, that most employers became aware of and motivated to meet the Wrap SPD plan document requirement.

The term “wrap” comes from original DOL guidance suggesting that the Wrap SPD plan document had to be formally bound to the insurance carrier’s benefit plan booklet. The combination of the two documents would upon distribution to employees represent a compliant Wrap SPD plan document for a particular benefit plan. Obviously, times have changed, and many of these documents are now provided electronically; thus, the “wrap-around” concept no longer applies in the literal sense, but the concept remains.

The Wrap SPD plan document is only a $99 one-time fee and the plan document should not need to be updated until the health insurance carrier changes or every 5 years as required by the DOL.  For an additional $30 you can add all the supplemental insurance plans you also offer. 

The ERISA Wrap SPD plan document requirement to deliver a copy of the document to every employee eligible to participate in the plan can be met by personal hand delivery, USPS mail, or another personal delivery service (UPS, FEDEX, etc.).

Delivery via email of the Wrap SPD plan document is allowed so long as the employee has access to a personal computer and printer at his or her regular workstation and the employer provides a printed copy upon request.

See a short 3.5-minute video at: https://www.coredocuments.com/group-insurance-wrap-spds-now-avalable-just-99-core-documents/

See the Wrap SPD plan document webpage: https://www.coredocuments.com/employers-must-prepare-erisa-wrapper-supplement-certificate-insurance/

See a Wrap SPD PDF brochure and order form at: https://www.coredocuments.com/wp-content/uploads/2017/11/Core-Wrap-SPD-Plan-Document-Forms.pdf

See the Wrap SPD plan document encrypted and secure online order form:   https://www.coredocuments.com/user/formSPD.php

Comments

Post a Comment

Popular posts from this blog

How Does The Individual Coverage HRA Works?

Image
While health benefits have historically been one-size-fits-all, today's employees need personalisation and flexibility, which is what will win them over in a competitive job market. How, therefore, do you provide health advantages that are specifically suited to the requirements of your varied workforce, which includes employees of all ages, health FSA plan , and financial means? Individual Coverage HRA By providing Individual Coverage HRA , you may provide qualified workers with a tax-free healthcare allowance that they can use each month to pay for the personalised insurance that is most advantageous to them. If you want to know how ICHRA works, read the blog. This is a list of the procedure's four steps: First, create your benefit. The ICHRA benefit is first tailored to meet the requirements of the employee by the employer. The amount of tax-free money users want to effective reward each month in the form of a set allowance, the expenses you want to be covered by rei...
Read more

Understanding Section 125 POP Documents: A Guide for Employers and Employees

Image
Section 125 of the Internal Revenue Code (IRC) has significant implications for both employers and employees when it comes to offering and participating in employee benefit plans. One crucial document that plays a central role in Section 125 plans is the POP document, or Premium Only Plan document. In this blog, you will dive into what a Section 125 POP document is, its purpose, and why it's essential for businesses and their employees. What Is a Section 125 POP Document? A Section 125 POP document, also known as a section 125 premium only plan , is a legal document that outlines the rules and procedures for a Premium Only Plan (POP) offered by an employer. A POP allows employees to pay their share of health insurance premiums, as well as other eligible benefits, with pre-tax dollars. This means that employees can reduce their taxable income by the amount they contribute to these plans, ultimately lowering their overall tax liability. Section 125 premium only plan Why Is a Sect...
Read more