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Nebraska - Compensation & Benefit Legislation

NEBRASKA - AASHOWME

Demonstrates www.BenefitsReview.com™ site. Illustrates insurance carriers' coverages within the State.

NEBRASKA - ADOPTED CHILD HEALTH CARE MANDATE

OBRA 1993 (Federal) requires group health plans to honor medical and child support orders. Also, plans must treat adopted children like biological children covered by the plan, and plans are precluded from applying pre-existing condition exclusions to an adopted child where no such exclusion applies to a newborn biological child. Health plans that covered the cost of pediatric vaccines as of May 1, 1993, and fail to continue that level of coverage, will be subject to an excise tax penalty applicable to plans that fail to meet the health care continuation coverage requirements under OBRA 1993.

Mandatory coverage of birth of adopted children is included in state's newborn health care mandate.

Preventive care for children: Yes, immunizations to age 6.

(Nebraska Rev. Stat. Sections 44-710.19, 44-761, 44-784)

NEBRASKA - ALCOHOLISM & DRUG ABUSE

Employer option. (Alcoholism treatment only).

Minimum yearly inpatient coverage: 30 days.

Minimum yearly outpatient coverage: no statutory requirement.

Minimum lifetime coverage: 2 inpatient treatments; 60 outpatient visits.

(Nebraska Rev. Stat. Sections 44-769, 44-778, 44-779, 44-780, 44-781)

NEBRASKA - CAFETERIA PLAN TAX LAWS

State income tax, unemployment insurance tax on salary reduction: No. Follows FUTA.

NEBRASKA - CONTINUATION OF COVERAGE CONVERSIONS

Events Triggering Continuation of Coverage:

• Death: Yes, 1 year of continuation coverage.

• Job Termination: Yes, unless terminated for gross job misconduct. (To be eligible, employee must 6 months of continuous coverage prior to termination.)

• Reduction of Hours: No, unless reduction of hours terminates membership in the group.

• Divorce or Legal Separation: No.

• Medicare Eligibility: No.

• Other Provisions: Termination of coverage for any other reason for non-payment.

• Early Termination of Continuation of Coverage: Becoming eligible for Medicare; becoming eligible for similar benefits, including coverage for pre-existing conditions under another group policy; failure to make a timely payment.

• (Nebraska Rev. Stat. Sections 44-1640, 44-1643).

NEBRASKA - COORDINATION OF BENEFITS

Requires use of the birthday rule if coordinating benefits. Based on 1986 National Association of Insurance Commissioner Rules model. (Nebraska Rev. Stat. Section 44-710.04)

NEBRASKA - COST-OF-LIVING

ERI's Relocation Assessor™ is a recommended source for U.S./Canadian cost-of-living data and U.S. Automobile Cost Survey.

NEBRASKA - DRUG TESTING AND EMPLOYEE ASSISTANCE BENEFITS

Who is Covered by Statute: Employees, applicants, and employers with 6 or more employees and all government entities.

Applicant Testing: State has no statutory requirements.

Employee Testing: State has no statutory requirements.

How Test Results are Used: Tests may be used to discharge or discipline employees.

Enforcement of Statutes: State has no statutory requirements.

Employee Remedies: State has no statutory requirements.

Employer Penalties: Violations of the statute are misdemeanors.

Who Pays for Testing: State has no statutory requirements.

Employee Assistance Benefits: State has no statutory requirements.

Other Requirements: Employee may request a blood test. Employee refusal to submit to a test may result in denial of continued employment.

(Nebraska Rev. Stat. Ann. Sections 48-1901 thru 48-1910.)

NEBRASKA - GROUP HEALTH CODE ADDITIONS (MANDATED)

Alcoholism Treatment: Insurers must offer group policies at least 30 days of inpatient care per year with at least 2 treatment periods in the policy lifetime and 60 outpatient visits over the policy lifetime. (Nebraska Rev. Stat. Section 44-778, 44-779.)

Coverage Continuation: Policies must provide continuation rights to involuntarily terminated employees and their dependents and to surviving spouses and dependents of deceased employees. (Nebraska Rev. Stat. Sections 44-1640, 44-1643, 44-1644, 44-1645.)

Handicapped Dependents: Coverage of dependent children cannot be terminated while a person is incapable of employment due to mental retardation or physical handicap and chiefly dependent on the insured. (Nebraska Rev. Stat. Sections 44-710.01, 44-761.)

Mammograms: Insurance policies must cover mammograms. (L68, 1995)

Managed Care Plans: The Managed Care Patient Protection Act sets forth written agreements between managed care plans and participating providers requiring conformity to established standards, terms, and provisions and also requiring standards for access to the delivery of emergency medical services. Under the Act, health carriers must allow participating providers to discuss treatment options with patients; carriers must cover benefits for emergency services which are provided outside the network and those additional medically necessary emergency services which are recommended by a treating physician; and reasonable co-payments for emergency services may be imposed by health carriers to deter inappropriate use of facilities. (LB279, 1997)

Mental Health: Publicly-funded hospitals: Policies may not deny coverage of treatment for mental or nervous disorders solely because the treatment is rendered in a publicly-funded hospital. (Nebraska Rev. Stat. Section 44-782.)

Newborns: Policies providing family coverage must provide benefits for newborns from the moment of birth for injury or sickness, including treatment of medically diagnosed congenital defects and birth abnormalities. (Nebraska Rev. Stat. Section 44-710.19.)

Policies for Small Employers: Small employer insurance carriers must provide to small employers a basic health benefit plan and a standard health benefit plan, which must provide coverage for childhood immunizations and reimbursement to mental health practitioners. A committee will design the basic and standard benefits and cost-sharing mechanisms as managed care arrangements. Uniform claims forms to be used by employers and providers are required. (Nebraska Rev. Stat. Sections 48-144.03, 71-2049.) A small employer is one employing at least three but no more than 50 eligible employees. (L837, 1995) (Nebraska Rev. Stat. Sections 837, 44-5253, 44-5256, 44-5260.) Prescription Drug Policies with provide reimbursements for purchase of prescription drugs, including those offered under HMOs and PPOs, must not require that drugs be purchased from a mail order pharmacy as a condition for receiving reimbursement. Also, policies providing benefits for prescription drugs and other pharmacy services, including those provided under preferred provider organizations but excluding those provided under health maintenance organizations, must not impose a fee or co-payment, provide for differences in coverage, or impose different conditions upon those using non mail in services which are not incurred by those using mail in services. These prescription drug guidelines do not cover reimbursements for purchases of long term maintenance drugs, those medications dispensed by a single period of no less that 180 days exclusive of authorized refills for the ongoing treatment of a chronic medical or disease or congenital condition or disorder. (AB224, 1995) (Nebraska Rev. Stat. Section 44-513.02.)

Providers: Obstetricians and Gynecologists: Group health care plans, including HMOs, must classify obstetricians and gynecologists as primary are physicians if they meet qualifications of primary care physicians and if they perform all functions provided by primary care physicians. (L532, 1996)

NEBRASKA - GROUP HEALTH FOR SMALL EMPLOYERS

For insurance plans offered to small employers:

• Eligibility Criteria: 2 - 50 employees; the majority of employees must be employed within the state.

• Restrictions on premiums: Yes.

• Restrictions on cancellation: Yes.

• Pre-existing Conditions: No claim shall be excluded more than 12 months following the effective date of coverage.

• Other: Basic minimum inpatient and outpatient coverage according to guidelines created by Health Benefit Plan Committee

• (Nebraska Rev. Stat. Section 44-5229, 44-5230, 44-5253, 44-5258, 44-5259, 44-5264)

NEBRASKA - GROUP LIFE CODE ADDITIONS

Employer required to pay part of premium: Yes.

Percent of employees who must elect coverage (if employees pay part of premium): 75%.

Percent of employees who must be covered if employer pays all of premium: 100%.

Minimum number of employees in group plan: 5.

Employer prohibited as beneficiary: Yes.

Grace period (days): 31.

Mandatory conversion: Yes.

Other provisions: None.

(Nebraska Rev. Stat. Sections 44-1602,44-1607)

NEBRASKA - HOLIDAYS

January 1, Washington's Birthday (or 3rd Monday in February), Memorial Day (or last Monday in May), July 4, Labor Day (or 1st Monday in September), Veterans Day, and December 25 are state holidays in all 50 states and in the District of Columbia. Other holidays under State law include: Martin Luther King's birthday (or 3rd Monday in January), Columbus Day (or 2nd Monday in October), Thanksgiving. Other: If holiday falls on Sunday, following Monday is a holiday. If state holiday differs from federal holiday schedule, federal schedule is observed except for Veteran's Day.

(Nebraska Rev. Stat. Section 62-301)

NEBRASKA - IMMIGRATION (PREVAILING WAGE POLICY)

See U.S. Federal General Administrative Letter 1-2000

NEBRASKA - JURY DUTY & WITNESS TIME OFF

Employer Restriction For Discharging Employee For Taking Leave For Jury Service: Yes.

Remedies and Penalties: Violator is guilty of a Class IV misdemeanor.

Other Requirements: Employee must give employer reasonable notice prior to jury service. Employer may reduce employee's pay by the amount paid by the court. (Nebraska Rev. Stat. Section 25-1640.)

Employer Restriction For Discharging Employee For Taking Leave to be a Witness: State reports no statutory requirements.

Remedies and Penalties: State reports no statutory requirements.

Other Requirements: None reported.

NEBRASKA - LEAVES OF ABSENCE

State reports no statutory requirements.

See U.S. Federal Family and Medical Leave Act

NEBRASKA - LONG TERM DISABILITY CODE ADDITIONS

State does not require employer to provide long term disability benefits; although many employers do in order to remain competitive in hiring/retention of employees.

See LEAVES OF ABSENCE (above), WORKERS' COMPENSATION (below) and U.S. Federal Americans With Disabilities Act

NEBRASKA - MANDATED PROVIDERS

Optometrists, chiropractors, dentists, psychologists, and podiatrists. Mandatory coverage for osteopaths. Direct access to obstetrician/gynecologist. (Nebraska Rev. Stat. Section 44-513, 44-786)

NEBRASKA - MENTAL HEALTH CARE

State reports no statutory requirements.

NEBRASKA - MINIMUM WAGE

Refer to the Federal minimum wage: $5.15 per hour (effective September 1, 1997).

Exemptions: Certain professional, agriculture workers, baby-sitters, students (75% of minimum wage), apprentices (75% of minimum wage), handicapped workers in special environment.

(Nebraska Rev. Stat. Sections 14-1203, 48-1202, 48-1203)

See U.S. Minimum Wage

NEBRASKA - NEW HIRE REPORTING

Who is required to report: All employers.

Who must be reported: All new employees and rehires.

Exempt from reporting: No exemptions.

Form(s) to file: W-4 form, employer reporting listing elements required by law, electronically by the Internet, magnetically, by disk, or by fax.

Filing deadline: Within 20 days of hire.

Employer information to be included: Name, address, and federal EIN.

Employee information to be included: Name, address, and SSN.

Penalty for failure to report: Fines of $25 may be imposed. $500 where an employer and employee have conspired not to report.

(Neb. Rev. Stat. Ann. Section 48-2301 - 48-2308)

NEBRASKA - NEWBORN CARE MANDATE

Mandated coverage.

Preventive care for children: Yes, immunizations to age 6.

(Nebraska Rev. Stat. Sections 44-710.19, 44-761, 44-784)

NEBRASKA - OVERTIME COMPENSATION REQUIREMENTS

State reports no statutory requirements.

NEBRASKA - PARENTAL LEAVE

See U.S. Federal Family and Medical Leave Act

NEBRASKA - PRE-EXISTING CONDITIONS

For insurance plans offered to small employers, no claim shall be excluded for more than 12 months following the effective date of coverage due to a pre-existing condition.

(Nebraska Rev. Stat. Sections 44-5229, 44-5230, 44-5253, 44-5258, 44-5259, 11-5264)

See U.S. Federal Health Insurance Portability & Accountability Act

NEBRASKA - PROTECTED CLASSIFICATIONS

Age:   No.

Race:  Yes.

Color:   Yes.

National Origin: Yes.

Ancestry: Yes.

Religion:  Yes.

Sex:  Yes.

Pregnancy: Yes.

Sexual Harassment: Yes.

(Neb. Rev. Stat. Sections 48-1101-48-1104; Neb. Admin. R. & Regs. Section 1-8.)

NEBRASKA - SALARY SURVEY

ERI's Relocation Assessor™ is a recommended source for U.S./Canadian wages & salaries (covering 3,000 positions).

NEBRASKA - SHORT TERM DISABILITY CODE ADDITIONS

State does not require employer or employee participation in short term disability plans.

NEBRASKA - TERMINATION & SEVERANCE PAY

Date pay is due if employee is discharged: Earlier of payday or within 2 weeks.

Date due if employee resigns: Earlier of payday or within 2 weeks.

Wages: Yes. (Wages defined to include commissions.)

Vacation Pay: Yes. (Wages defined to include fringe benefits, including vacation.

Holiday: No.

Sick leave: Yes. (Wages defined to include fringe benefits, including sick leave.)

Severance: No.

(Nebraska Rev. Stat. Sections 48-1229, 48-1230)

NEBRASKA - UNEMPLOYMENT TAX

Employer Contributions:

• Tax Rate (%):   

• Standard: 5.4

• Maximum: 5.4

• Minimum: 0.1

Voluntary Contribution Provision: Yes. If received on or before March 10 (beginning of reporting year).

(Nebraska Rev. Stat. Sections 48-649, 48-652.)

NEBRASKA - VACATION PAY

See TERMINATION & SEVERANCE PAY (above)

NEBRASKA - VOTING TIME OFF

As much time as when added to available time outside working hours will give employees 2 consecutive hours while polls are open, if employee does not already have 2 consecutive hours away from work while polls are open.

(Nebraska Rev. Stat. Sections 32-922, 32-1537.)

NEBRASKA - WORKERS' COMPENSATION

Private Employers: Mandatory as to all employments. Corporate officers who are 25% shareholders may reject coverage. Elective as to proprietors, partners of self-employed.

Public Employers: Mandatory as to all public employments, including officials elected or appointed for fixed terms.

Exceptions: Farm labor and domestic servants.

Special Coverage Provisions: Voluntary as to farm labor and domestic servants.

(U.S. Chamber of Commerce, 1994 Analysis of Workers' Compensation Laws.)