What You and Your Clients Need to Know: Employer Fiduciary Process Requirements from the CAA 2021
Published on July 11th, 2023
The Consolidated Appropriations Act (CAA) of 2021 is about improving transparency and accountability of the healthcare marketplace. When we look inside the CAA it contains machine-readable file reporting, Rx DC, fee disclosure and create clause removal. The CAA also requires plan sponsors (fiduciary) to demonstrate that their (fiduciary duties) purchased healthcare services are cost effective and high quality.
The fiduciary attestation for submission is due December 31, 2023, this submission covers the time period of December 27, 2020, through December 31, 2023. Submissions are required by fully insured and self-insured plan sponsors – large and small groups. The plan sponsor can attest or another entity can do this on their behalf (carrier, etc.). Important note: this is an employer law, not a TPA or broker law, therefore it’s the employer’s responsibility to make sure it’s completed.
As a result, employers must establish a fiduciary process for oversight to document efforts to comply with the CAA as fiduciaries. Sound familiar? It should – this is similar to the governance organizations have done for 401(k) and retirement plans for decades.
As of Q1 2023, there are 17 issued or pending lawsuits due to non-compliance by payors, providers and employers, an indication that this is not going away. To avoid the risk of litigation and financial liability, we urge employers to begin taking action now.
In this valuable webinar, you’ll learn the important steps employers should be taking to meet their fiduciary requirements and how you can assist them, including:
- Plan Oversight: Establish a healthy plan fiduciary committee
- Asset Management: Conduct a health plan risk assessment
- Plan Operations: Own your own data to efficiently manage your current and future costs, and manage the integrity and value of your benefits offering
Listen in as Patrick Williams, AIF, Fiduciary in a Box, and Karli Dunkleberger, VP of industry consulting at Alegeus, share the knowledge you need to keep your employers compliant.
