Ask the Experts

Direct and Indirect Compensation Q The "Ask the Experts" column in the November/December 2021 issue of Employee Benefit Plan Review discussed the new requirements for group health plan brokers and consultants to disclose direct and indirect compensation they expect to receive for their services to the plan. Has the Department of Labor ("DOL") issued any guidance that would help fiduciaries in reviewing and analyzing these disclosures? A On the eve of 2022, the Employee Benefits Security Administration (the "Department"), an arm of the DOL, issued a temporary enforcement policy in its Field Assistance Bulletin 2021-03. Plans Subject to Disclosures All group health plans covered by ERISA, including small and large plans, fully-insured and self-insured, grandfathered and nongrandfathered, are subject to the new disclosure requirements. [...]the fee disclosures do not exclude from its coverage limited-scope dental and vision plans. Brokerage services include: * Selection of health insurance and stop-loss policies and vendors; * Products and tools for recordkeeping; * Medical management; * Benefits administration; * Pharmacy benefit management; * Wellness; * Transparency; * Disease management, * Compliance; * Employee assistance programs; or * Third-party administration, as well as * Groups purchasing organization-preferred vendor panels.