The Consolidated Appropriations Act, 2021 (the "CAA") was signed into law on December 27, 2020. The CAA was a large and complicated bill, consisting of approximately $2.3 trillion dollars of spending laid out in its 5,593 pages. The CAA is best known for providing many Americans with a $600 stimulus check due to the ongoing pandemic and averting a government shutdown. However, the CAA also included major changes to group health plans ("health plans"), health and dependent care flexible spending arrangements (collectively, "FSAs"), educational assistance programs, and retirement plans.

This article summarizes the major provisions of the CAA that affect employee benefit plans and provides action steps for employers to implement these changes. For more detailed information about the CAA and its provisions, please contact the Kutak Rock Employee Benefits and Executive Compensation practice group.

Health Plan Provisions

Unless otherwise specified, the effective date for the health plan changes is January 1, 2022:

• Surprise Billing Limitations and Related Requirements. The CAA establishes cost sharing requirements and the amounts and time periods by which a plan must pay providers.
• Independent Dispute Resolution Process for Determining Out of Network Rates. Federal agencies must issue regulations to implement a new independent dispute resolution process by December 28, 2021 which health plans will use to determine the amount payable to certain out of network providers...

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