TAX ALERT May 28, 2014 Jill Harris-Author
|
|
- Justin Fletcher
- 7 years ago
- Views:
Transcription
1 TAX ALERT May 28, 2014 Jill Harris-Author The Affordable Care Act added a patient-centered outcomes research (PCOR) fee on health plans to support clinical effectiveness research. The PCOR fee applies to plan years ending on or after Oct. 1, 2012, and before Oct. 1, The PCOR fee is due by July 31 of the calendar year following the close of the plan year. For plan years ending in 2013, the fee is due by July 31, PCOR fees are required to be reported annually on Form 720, Quarterly Federal Excise Tax Return, for the second quarter of the calendar year. The due date of the return is July 31. Plan sponsors and insurers subject to PCOR fees but not other types of excise taxes should file Form 720 only for the second quarter, and no filings are needed for the other quarters. The PCOR fee can be paid electronically or mailed to the IRS with the Form 720 using a Form 720-V payment voucher for the second quarter. According to the IRS, the fee is tax-deductible as a business expense. The PCOR fee is assessed based on the number of employees, spouses and dependents that are covered by the plan. The fee is $1 per covered life for plan years ending before Oct. 1, 2013, and $2 per covered life thereafter, subject to adjustment by the government. However, the January 2014 version of Form 720 reflects only the $1 fee and not the $2 fee. The IRS is expected to update Form 720 before July 31, 2014, to include the $2 fee. This chart summarizes the fee schedule and due dates: Plan Year End Form 720 Due Date PCOR Fee Plan years ending in October, vember or December 2012 July 31, 2013 $1 per covered life Plan years ending in January through September 2013 July 31, 2014 $1 per covered life Plan years ending in October, vember or December 2013 July 31, 2014 $2 per covered life Who pays the fee? For insured plans, the insurance company is responsible for filing Form 720 and paying the PCOR fee. Therefore, employers with only insured health plans have no filing requirement. If an employer sponsors a self-insured health plan, the employer must file Form 720 and pay the PCOR fee. For selfinsured plans with multiple employers, the named plan sponsor is generally required to file Form 720. A self-insured health plan is any plan for providing accident or health coverage if any portion of such coverage is provided other than through an insurance policy. Since the fee is a tax assessed against the plan sponsor and not the plan, most funded plans subject to ERISA must not pay the fee using plan assets since doing so would be considered a prohibited transaction by the U.S. Department of Labor (DOL). The DOL has provided some limited exceptions to this rule for plans with multiple employers if the plan sponsor exists solely for the purpose of sponsoring and administering the plan and has no source of funding independent of plan assets. Plans subject to the fee Plans sponsored by all types of employers, including tax-exempt organizations and governmental entities, are subject to the PCOR fee. Most health plans, including major medical plans, prescription drug plans and retiree-only plans, are subject to the PCOR fee, regardless of the number of plan participants. The special rules that apply to Health Reimbursement Accounts (HRAs) and Health Flexible Spending Accounts (FSAs) are discussed below.
2 Plans exempt from the fee include: A dental or vision plan with a separate insurance policy or employee election An employee assistance program (EAP), disease management program, or wellness program if the program does not provide significant medical care or treatment Plans that primarily cover individuals working outside the United States Health Savings Accounts (HSAs) Certain HRAs and FSAs If a plan sponsor maintains more than one self-insured plan, the plans can be treated as a single plan if they have the same plan year. For example, if an employer has a self-insured medical plan and a separate self-insured prescription drug plan with the same plan year, each employee, spouse and dependent covered under both plans is only counted once for purposes of the PCOR fee. The IRS has created a helpful chart showing how the PCOR fee applies to common types of health plans. Application of the Patient-Centered Outcomes Research Trust Fund Fee to Common Types of Health Coverage or Arrangements Type of insurance coverage or arrangement Subject to the fee? Person responsible for paying and reporting the fee Accident and health coverage or major Yes The issuer if insured medical insurance coverage The plan sponsor if self-insured Retiree-only health or major medical Yes The issuer if insured coverage The plan sponsor if self-insured Health or major medical coverage under Yes Each issuer or plan sponsor multiple policies or plans See below for special rules for coverage under multiple applicable self-insured health plans COBRA coverage Yes The issuer if insured The plan sponsor if self-insured Health Reimbursement Arrangement (HRA), Yes, unless the The plan sponsor including a premium-only HRA arrangement satisfies the requirements for being treated as an excepted benefit See below for special rules for coverage under multiple applicable self-insured health plans and special counting rules for HRAs Flexible Spending Arrangement (FSA) State & local government health or major medical plans for employees and/or retirees Stand-alone dental or vision coverage Group insurance policy designed and issued specifically to cover primarily employees working and residing outside the United States Self-insured health plan designed specifically to cover primarily employees who are working and residing outside the United States Medicare (the insurance program established under title XVIII of the Social Security Act) Medicaid (the medical assistance program established by title XIX of the Social Security Act) Yes, unless the arrangement satisfies the requirements for being treated as an excepted benefit The plan sponsor See below for special counting rules for FSAs Yes The issuer if insured The plan sponsor if self-insured
3 Children s Health Insurance Program (CHIP) (the medical assistance program established under title XXI of the Social Security Act) Military health plans (programs established by Federal law for providing medical care (other than through insurance policies) to individuals (spouses or dependents) by reason of the individual being (or having been) a member of the Armed Forces of the United States) Certain Indian tribal government health plans (programs established by Federal law for providing medical care (other than through insurance policies) to members of Indian tribes (as defined in section 4(d) of the Indian Health Care Improvement Act)) Health Savings Arrangements (HSAs) Archer Medical Savings Accounts (MSAs) Hospital indemnity or specified illness benefits Stop-loss or indemnity reinsurance Employee assistance programs, disease management programs, or wellness programs treatment Accident-only coverage (including accidental death and dismemberment) Disability income coverage Automobile medical payment coverage Workers compensation or similar coverage On-site medical clinic, provided the program does not provide significant benefits in the nature of medical care or Special rule for coverage under multiple applicable self-insured health plans: Generally, separate fees apply for lives covered by each specified health insurance policy or applicable selfinsured health plan. However, two or more applicable self-insured health plans may be combined and treated as a single applicable self-insured health plan for purposes of calculating the PCORI fee but only if the plans have: o The same plan sponsor; and o The same plan year. For example, if amounts in an HRA may be used to pay deductibles and copays under a specified health insurance policy, the HRA (an applicable self-insured health plan) and the policy would be subject to separate PCORI fees. However, an HRA that may be used to pay deductibles and copays under the applicable self-insured health plan is not subject to a separate fee (and the fee will apply only to the applicable self-insured health plan) if both the HRA and the applicable self-insured health plan have the same plan sponsor and the same plan year. There is no similar rule for lives covered by more than one insurance policy subject to the PCORI fee. Special counting rule for HRAs and FSAs: Plan sponsors are permitted to assume one covered life for each employee with an HRA. Plan sponsors are permitted to assume one covered life for each employee with an FSA.
4 Special rules for Health Reimbursement and Health Flexible Spending Accounts Health Reimbursement Accounts (HRAs). Nearly all HRAs are subject to the PCOR fee because they do not meet the conditions for exemption. An HRA will be exempt from the PCOR fee if it provides benefits only for dental or vision expenses, or it meets the following three conditions: Other group health plan coverage is offered to HRA participants The maximum benefit payable under the HRA to any participant for a year does not exceed $500 The maximum reimbursement available under the HRA is less than 500 percent of the value of the HRA coverage Health Flexible Spending Accounts (FSAs). A health FSA is exempt from the PCOR fee if it satisfies an availability condition and a maximum benefit condition. Availability condition. The availability condition will be met if other group health plan coverage, such as major medical, is offered to FSA participants. It is unclear whether the eligibility requirements and the entry dates for the health FSA and the other group health plan must be exactly the same in order to meet the availability condition. Thus, professional assistance should be obtained if they are different. Maximum benefit condition. The maximum benefit condition is met if the maximum benefit payable under the health FSA to any participant for a year does not exceed the greater of (1) two times the participant s annual salary reduction election, or (2) the amount of the participant s salary reduction election plus $500. The maximum benefit condition will be met if the health FSA is funded with: o Employee contributions only (no employer contributions); o Any one-for-one employer match (e.g., employer $600, employee $600); or o An employer contribution of $500 or less. The following FSA funding methods would not meet the maximum benefit condition: o An employer contribution of more than $500, if the employee contributes $500 or less (e.g., employer $600, employee $400) o An employer contribution in excess of a one-to-one match, if the employee contributes more than $500 (e.g., employer $700, employee $600) Employers with credit-based cafeteria plans which give employees a choice of benefits with employer credits going into the health FSA or taken in cash should obtain professional assistance since additional special rules apply. Additional special rules for HRAs and FSAs. Once an employer determines that its HRA or FSA is subject to the PCOR fee, the employer should consider the following special rules: 1. The PCOR fee for an HRA or FSA is based only on the average number of employees. Spouses and dependents are ignored. 2. A stand-alone HRA or FSA that is not paired with a major medical plan will be subject to the PCOR fee based on the average number of employees participating in the HRA or FSA during the HRA or FSA plan year. 3. If a major medical plan paired with the HRA or FSA is insured, the insurance company pays a PCOR fee on the major medical plan but the employer pays the PCOR fee on the HRA or FSA. The insurance company will pay the fee based on the average number of employees, spouses and dependents in the insured major medical plan. However, the fee for the HRA or FSA is only based on the number of employees (spouses and dependents are ignored). The government receives a PCOR fee on the employees twice once under the major medical plan, and once under the HRA or FSA. 4. If a major medical plan paired with the HRA or FSA is self-insured, the employer is responsible for paying the PCOR fee on each plan. If the major medical plan and the HRA or FSA have different plan years, the fee is calculated on each plan separately. The PCOR fee for the major medical plan is based on the average number of employees, spouses and dependents in the major medical plan. However, the fee for the HRA or FSA is only based on the average number of employees (spouses and dependents are ignored). 5. If a major medical plan paired with the HRA or FSA is self-insured and has the same plan year as the HRA or FSA, then the major medical plan and the HRA or FSA are treated as a single plan. In this case, the fee is based on the number of employees, spouses and dependents under the major medical plan, plus the number of employees (but not spouses or dependents) who are in the HRA or FSA but are not in the major medical plan (if any).
5 Determining the covered lives The IRS provides different rules for determining the average number of covered lives (i.e., employees, spouses and dependents) under insured plans versus self-insured plans. The same method must be used consistently for the duration of any policy or plan year. However, the insurer or sponsor is not required to use the same method from one year to the next. A plan sponsor of a self-insured plan may use any of the following three methods to determine the number of covered lives for a plan year: 1. Actual count method. Count the covered lives on each day of the plan year and divide by the number of days in the plan year. Example: An employer has 900 covered lives on Jan. 1, 901 on Jan. 2, 890 on Jan. 3, etc., and the sum of the lives covered under the plan on each day of the plan year is 328,500. The average number of covered lives is 900 (328, days). 2. Snapshot method. Count the covered lives on a single day in each quarter (or more than one day) and divide the total by the number of dates on which a count was made. The date or dates must be consistent for each quarter. For example, if the last day of the first quarter is chosen, then the last day of the second, third and fourth quarters should be used as well. Example: An employer has 900 covered lives on Jan. 15, 910 on April 15, 890 on July 15, and 880 on Oct. 15. The average number of covered lives is 895 [( ) 4 days]. As an alternative to counting actual lives, an employer can count the number of employees with self-only coverage on the designated dates, plus the number of employees with other than self-only coverage multiplied by Here is an example of how this snapshot factor method works: Jan. 15 April 15 July 15 Oct. 15 Total Employees with self-only coverage ,260 Employees with other than self-only coverage (family or dependent coverage) The average number of covered lives is 832 [(1,260 + (880 x 2.35)) 4 days]. 3. Form 5500 method. If a Form 5500 for a plan is filed before the due date of the Form 720 for that year, the plan sponsor can determine the number of covered lives based on the Form If the plan offers just self-only coverage, the plan sponsor adds the participant counts at the beginning and end of the year (lines 5 and 6d on Form 5500) and divides by 2. If the plan also offers family or dependent coverage, the plan sponsor adds the participant counts at the beginning and end of the year (lines 5 and 6d on Form 5500) without dividing by 2. Example: An employer offers single and family coverage with a plan year ending on Dec. 31. The 2013 Form 5500 is filed on June 5, 2014, and reports 132 participants on line 5 and 148 participants on line 6d. The number of covered lives is 280 ( ).
6 Action steps To evaluate liability for PCOR fees, plan sponsors should identify all of their plans that provide medical benefits and determine if each plan is insured or self-insured. If any plan is self-insured, the plan sponsor should take the following actions: 1. Determine the type of plan (major medical, HRA, FSA, etc.) and the plan year end 2. Determine if any of the plans are exempt from the PCOR fee 3. Determine if any plans can be aggregated for purposes of counting covered lives because they have the same plan year end 4. Decide which method for counting covered lives will be used 5. Count the number of covered lives under each plan (remember to apply the employee only counting rule for HRAs and FSAs) 6. Access Form 720 and the related instructions on the IRS website 7. Review the Form 720 instructions, including the PCOR fee discussion on pages 8 and 9 8. Complete Form 720 to reflect the plan sponsor s name, address and EIN and the quarter ending date (June 2014) in the heading and to report the average number of covered lives under all self-insured plans in Part II (line IRS. 133, Applicable self-insured health plans) 9. Calculate the fee based on the plan year end 10. Complete a Form 720-V payment voucher for the second quarter if paying by check or money order 11. File Form 720 (and Form 720-V if needed) and pay the fee by July 31, Keep a copy of the Form 720 and supporting documentation for at least four years from the date of filing This document contains general information, may be based on authorities that are subject to change, and is not a substitute for professional advice or services. This document does not constitute assurance, tax, consulting, business, financial, investment, legal or other professional advice, and you should consult a qualified professional advisor before taking any action based on the information herein. McGladrey LLP, its affiliates and related entities are not responsible for any loss resulting from or relating to reliance on this document by any person. McGladrey LLP is an Iowa limited liability partnership and the U.S. member firm of RSM International, a global network of independent accounting, tax and consulting firms. The member firms of RSM International collaborate to provide services to global clients, but are separate and distinct legal entities that cannot obligate each other. Each member firm is responsible only for its own acts and omissions, and not those of any other party. McGladrey, the McGladrey logo, the McGladrey Classic logo, The power of being understood, Power comes from being understood, and Experience the power of being understood are registered trademarks of McGladrey LLP McGladrey LLP. All Rights Reserved. This publication represents the views of the author(s), and does not necessarily represent the views of McGladrey LLP. This publication does not constitute professional advice.
IRS Releases Final Regulations Imposing PCORI Fee on Sponsors of Fully Insured and Self-Insured Health Plans
IRS Releases Final Regulations Imposing PCORI Fee on Sponsors of Fully Insured and Self-Insured Health Plans December 2012 The Internal Revenue Service (IRS) issued final regulations on December 5, 2012,
More informationIRS Issues Proposed Regulations on Research Fees
IRS Issues Proposed Regulations on Research Fees The Affordable Care Act (ACA) created the Patient-Centered Outcomes Research Institute (Institute) to help patients, clinicians, payers and the public make
More informationHHS Final Rule on Transitional Reinsurance Fee Adds to Employer Costs
HHS Final Rule on Transitional Reinsurance Fee Adds to Employer Costs March 2013 A transitional reinsurance fee is being added to the penalties and taxes imposed on employers and their fully insured and
More informationSelf-funded Employer s Guide. Transitional Reinsurance Fee and Patient-Centered Outcomes Research Institute Fee
Self-funded Employer s Guide Transitional Reinsurance Fee and Patient-Centered Outcomes Research Institute Fee To fund some of the changes mandated by the Affordable Care Act (ACA), several new taxes and
More informationINTERNATIONAL MEDICAL ADMINISTRATORS, INC. (IMA)
INTERNATIONAL MEDICAL ADMINISTRATORS, INC. (IMA) Important Notice: ACA s PCORI Fee and Self Insured Plans Under the Affordable Care Act (ACA), your group health plan is required to pay a Patient Centered
More informationWhat s News in Tax Analysis That Matters from Washington National Tax
What s News in Tax Analysis That Matters from Washington National Tax Health Insurance Companies and Employers: There s a New Fee to Consider A new fee may apply to issuers of health insurance policies
More informationINTERNATIONAL MEDICAL ADMINISTRATORS, INC. (IMA) Important Notice: ACA s Transitional Reinsurance Fee and Self Insured Plans
INTERNATIONAL MEDICAL ADMINISTRATORS, INC. (IMA) Important Notice: ACA s Transitional Reinsurance Fee and Self Insured Plans Under the Affordable Care Act (ACA), your group health plan is required to pay
More informationW-2 Reporting Requirement
Revised January 2012 Notice 2012-9 provides guidance on W-2 reporting requirement IRS Issues New Guidance on Health Care Reform s The Internal Revenue Service (IRS) recently issued IRS Notice 2012-9, which
More informationWeyrich, Cronin & Sorra, Chartered
Weyrich, Cronin & Sorra, Chartered Health Insurance Reporting Requirements Date: 9/17/2014 The Affordable Care Act (ACA) brought many changes into the law, taking effect over a period of years. Among these
More informationMEMORANDUM HEALTH CARE REFORM FOR EMPLOYERS: IRS GUIDANCE ON NEW FORM W-2 REPORTING REQUIREMENT. May 14, 2012
hinklaw.com MEMORANDUM HEALTH CARE REFORM FOR EMPLOYERS: IRS GUIDANCE ON NEW FORM W-2 REPORTING REQUIREMENT May 14, 2012 One of the many new requirements in the Health Care Reform Law is a requirement
More informationIRS Issues Guidance on Mandatory Form W-2 Informational Reporting of Employer-Sponsored Health Coverage
IRS Issues Guidance on Mandatory Form W-2 Informational Reporting of Employer-Sponsored Health Coverage By Seth Perretta, Joel Wood and Matthew Fornataro of Crowell & Moring LLP On March 29, 2011, the
More informationEmployer's guide to health care reform
Employer's guide to health care reform Employer's guide to health care reform: the complete small business resource With the Affordable Care Act (ACA) in full swing, it s important you understand what
More informationReporting and Plan Documents under ERISA and Cafeteria Plan Rules
Reporting and Plan Documents under ERISA and Cafeteria Plan Rules The Employee Retirement Income Security Act (ERISA) was signed in 1974. The U.S. Department of Labor (DOL) is the agency responsible for
More informationHealth Law Update: Health Savings Account Provisions in the Medicare Prescription Drug Improvement and Modernization Act of 2003
Health Law Update: Health Savings Account Provisions in the Medicare Prescription Drug Improvement and Modernization Act of 2003 This Update summarizes the provisions of the Medicare Prescription Drug,
More informationPCORI & Reinsurance Fees Keeping Them Straight
June 18, 2013 Author: Christine L. Keller, Mark C. Nielsen, Vivian Hunter Turner, Brigen L. Winters If you have questions, please contact your regular Groom attorney or any of the Health and Welfare attorneys
More informationThis notice requests public comments on the implementation of provisions of the
Part III Administrative, Procedural, and Miscellaneous Request for Comments on Funding of Patient-Centered Outcomes Research Through Fees Payable by Issuers of Health Insurance Policies and Self-Insured
More informationHealth Savings Accounts
Health Savings Accounts I. What Are HSAs and Who Can Have Them? What is an HSA? An HSA is a tax-exempt trust or custodial account established exclusively for the purpose of paying qualified medical expenses
More informationIRS ISSUES GUIDANCE ON CADILLAC TAX
Issue One Hundred One March 2015 IRS ISSUES GUIDANCE ON CADILLAC TAX March 30, 2015 The Cadillac tax is scheduled to take effect in 2018. It will apply to employers or insurance carriers that sponsor plans
More informationHealth Reimbursement Arrangements
Health Reimbursement Arrangements Health Reimbursement Arrangements (HRAs) are plans designed to help employers and employees lower health care costs. Allowed under sections 105 and 106 of the Internal
More informationHow To Prepare A Health Care Plan For A Job Interview
Health Care Reform 2013 & 2014 Planning Employers should review the fast-approaching 2013 and 2014 health care reform requirements. State Exchanges will be opening enrollment as soon as October 1, 2013
More informationHealth Care Reform Update
Beginning in 2018, the Patient Protection and Affordable Care Act imposes an excise tax on high-cost health plans. In addition to being a way to raise revenue for the government, the reason for this provision
More informationACA Impact on Health FSAs and HRAs Q&A the following questions were
ACA Impact on Health FSAs and HRAs Q&A the following questions were asked during the two webinar sessions in (January, 2015) Do SBCs need to be provided to retirees who have a Retiree Only HRA? Yes Is
More informationInterim Guidance on Informational Reporting to Employees of the Cost of Their Group Health Insurance Coverage
Part III Administrative, Procedural, and Miscellaneous Interim Guidance on Informational Reporting to Employees of the Cost of Their Group Health Insurance Coverage Notice 2011-28 I. PURPOSE This notice
More informationImportant Effective Dates for Employers and Health Plans
Brought to you by Krempa Associates, Inc. Important Effective Dates for Employers and Health Plans On March 23, 2010, President Obama signed the health care reform bill, or Affordable Care Act (ACA), into
More informationCLIENT INFORMATION FORM
CLIENT INFORMATION FORM Company Profile Legal Name of Organization: Mailing Address: City: State: Zip: Executive Officer (signer): Title: Email Address: Telephone: Business Activity: Employer Fed Tax ID#:
More informationW-2 Reporting Bulletin
The Affordable Care Act requires employers to report the cost of coverage under an employersponsored group health plan on the employees Form W-2. [If you provide additional benefits under any other employer-sponsored
More informationHealth Savings Account Custodial Agreement
Health Savings Account Custodial Agreement The Participant named on the HSA Application is establishing a Health Savings Account under Code Section 223, as amended; naming Branch Banking & Trust Company
More informationTransitional reinsurance program results in significant new costs for group health plans
Transitional reinsurance program results in significant new costs for group health plans The Department of Health and Human Services (HHS) has issued additional guidance on the three-year transitional
More informationImportant Effective Dates for Employers and Health Plans
Brought to you by Hipskind Seyfarth Risk Solutions Important Effective Dates for Employers and Health Plans On March 23, 2010, President Obama signed the health care reform bill, or Affordable Care Act
More informationv.5 Payroll: Tips and Tricks
v.5 Payroll: Tips and Tricks Presented by Ken Emert, Shelby Consultant 2013 Shelby Systems, Inc. Other brand and product names are trademarks or registered trademarks of the respective holders. Objective
More informationCompliance Alert. IRS Notice 2015-87 Clarifies Several ACA Rules for Employers
Compliance Alert IRS Notice 2015-87 Clarifies Several ACA Rules for Employers December 29, 2015 Quick Facts: Notice 2015-87 clarifies a number of ACA rules for employer-provided health coverage. Key topics
More informationNew Benefit Reporting Requirements for Form W-2
A Better Partnership New Benefit Reporting Requirements for Form W-2 April Goff Norbert Kugele agoff@wnj.com nkugele@wnj.com (616) 752-2154 (616) 752-2186 2011 Warner Norcross & Judd LLP. All rights reserved.
More informationHealth Care Reform - 2016/2017 Strategic Analysis
Health Care Reform - 2016/2017 Strategic Analysis Employers sponsoring health can expect to see no slow-down in Affordable Care Act (ACA) rules, clarifications, and requirements. Understanding these changes,
More informationInitial proposed guidance now available on Cadillac tax for higher cost health coverage
Vol. 16, 078 March 18, 2015 EY Payroll NewsFlash Initial proposed guidance now available on Cadillac tax for higher cost health coverage Currently, qualified employer group health coverage is generally
More informationThe Affordable Care Act: Summary of Employer Requirements
The Affordable Care Act: Summary of Employer Requirements July 2012 Discussion Outline Overview of the Affordable Care Act (ACA) Employer coverage requirements Employer reporting requirements Individual
More informationIRS Issues Revised Guidance on Form W-2 Reporting Requirements for Costs of Employer Group Health Coverage
Legal Update January 23, 2012 IRS Issues Revised Guidance on Form W-2 Reporting Requirements for The Patient Protection and Affordable Care Act of 2010 (PPACA) requires employers to report the aggregate
More informationAffordable Care Act Update
Affordable Care Act Update Presented by: Jill Brooking, Vice President, Benefits Compliance National Financial Partners Corp. and its subsidiaries do not provide legal or tax advice. Compliance, regulatory
More informationHealth Savings Accounts
HSAs Health Savings Accounts 2014 and 2015 Limits Questions & Answers What is a Health Savings Account (HSA)? An HSA is a tax-exempt trust or custodial account established for the purpose of paying medical
More informationThe Transitional Reinsurance Program Operational Guidance: Counting Method Examples for Contributing Entities
DEPARTMENT OF HEALTH & HUMAN SERVICES Centers for Medicare & Medicaid Services Center for Consumer Information and Insurance Oversight 200 Independence Avenue SW Washington, DC 20201 Date: July 17, 2014
More informationIRS ISSUES FINAL REGULATIONS FOR COMPARATIVE EFFECTIVENESS RESEARCH FEES
HUMAN CAPITAL PRACTICE ALERT: HEALTH CARE REFORM BILL February 2013 www.willis.com IRS ISSUES FINAL REGULATIONS FOR COMPARATIVE EFFECTIVENESS RESEARCH FEES Final regulations on the fee to fund the Patient
More informationAnswers about. Health Care REFORM. for your business
Answers about Health Care REFORM for your business Since the time of its enactment in 2010, the health care reform law has remained controversial at least in part due to a constitutional challenge to the
More informationSmall Employers Eligible for Health Care Tax Credit
Brought to you by Clark-Mortenson Insurance Small Employers Eligible for Health Care Tax Credit The Affordable Care Act (ACA) created a health care tax credit for eligible small employers that provide
More informationThe Impact of Reinsurance on Group Health Plans
Reinsurance and other fees could impact employer health care costs To help offset the cost of coverage expansion and other provisions, the Patient Protection and Affordable Care Act (ACA) imposes a number
More informationFederal Register / Vol. 77, No. 235 / Thursday, December 6, 2012 / Rules and Regulations
Federal Register / Vol. 77, No. 235 / Thursday, December 6, 2012 / Rules and Regulations 72721 and adding the word, customs before the word, station ; d. Paragraph (b)(1) is amended by: i. Removing the
More informationHealth Care Reform Impacts Grandfathered Employer-Sponsored Group Health Plans: Now What?
April 2010 EMPLOYEE BENEFITS & EXECUTIVE COMPENSATION UPDATE Health Care Reform Impacts Grandfathered Employer-Sponsored Group Health Plans: Now What? This bulletin discusses certain provisions of The
More informationHealth Care Reform Frequently Asked Questions
Health Care Reform Frequently Asked Questions On March 23, 2010, President Obama signed federal health care reform into law, also known as the Patient Protection and Affordability Act. A second, or reconciliation
More informationThe Tax Consequences of ObamaCare
BLOG» The IRS and its 46 new powers to enforce ObamaCare June 5, 2013 The power granted to the IRS to enforce ObamaCare s mandates, taxes, penalties, reporting, and other requirements is unprecedented.
More informationLegislative Brief: HEALTH SAVINGS ACCOUNT (HSA) ELIGIBILITY
EmPowerHR Legislative Brief: HEALTH SAVINGS ACCOUNT (HSA) ELIGIBILITY Many employers offer high deductible health plans (HDHPs) to control premium costs, and pair this coverage with health savings accounts
More informationImportant Effective Dates for Employers and Health Plans
Brought to you by Sullivan Benefits Important Effective Dates for Employers and Health Plans On March 23, 2010, President Obama signed the health care reform bill, or Affordable Care Act (ACA), into law.
More informationHealth savings account Q&As
Health savings account Q&As What are HSAs and who can have them? 1. What is a Health Savings Account (HSA) and how does it work? An HSA is a tax-advantaged account established to pay for qualified medical
More informationAn Overview of Health Savings Accounts (HSAs) 1
An Overview of s (HSAs) 1 With Comparison to s, Arrangements (HRAs) and s (FSAs) Overview 2 A tax-exempt trust or custodial account established for the purpose of paying qualified medical expenses in conjunction
More informationACAP Guide to ACA Fees and Taxes for Health Insurers
Introduction ACAP Guide to ACA Fees and Taxes for Health Insurers Since being signed into law in March of 2010, the Patient Protection and Affordable Care Act (ACA) has introduced a wide range of health
More informationThe Affordable Care Act: What s next for employers?
The Affordable Care Act: What s next for employers? Prepared by: Jill Harris, Director, Washington National Tax, McGladrey LLP 507.226.0482, jill.harris@mcgladrey.com Bill O Malley, Director, Washington
More information2014 Health Insurance Survey Instructions
2014 Health Insurance Survey Instructions General Information 2014 Health Insurance Survey is Due 6/1/2015 Please complete the survey electronically online on the DOI website. If no Idaho residents were
More informationCONSUMER-DIRECTED MODEL COMPARISON HSAs, VEBA Plan, and HRAs
FEATURE Market segment(s) Health Savings Accounts (HSAs) For new sales & transfers from MSA s. Sold as part of Blue Cross Options Blue Plan CONSUMER-DIRECTED MODEL COMPARISON HSAs, VEBA Plan, and HRAs
More informationHealth care reform for large businesses
FOR PRODUCERS AND EMPLOYERS Health care reform for large businesses A guide to what you need to know now DECEMBER 2013 CONTENTS 2 Introduction Since 2010 when the Affordable Care Act (ACA) was signed into
More informationHealth Reimbursement Arrangement (HRA).
Retiree benefits 1 Retiree benefits Health Reimbursement Arrangement (HRA). Benefits for Union Pacific s Medicare-eligible retirees and their Medicare- eligible spouses and/or dependents. 2 Union pacific
More informationEmployer Shared Responsibility (ESR) Questions and Answers.
Employer Shared Responsibility (ESR) Questions and s. Recent ESR Questions asked by members of the accounting community, answered by senior members of Paychex Compliance Department. Question 1. When using
More informationHigh Cost Insurance Plans Excise Tax
High Cost Insurance Plans Excise Tax Summary: Levies an excise tax of 40 percent on insurance companies and plan administrators for any health coverage plan that is above the threshold of $10,200 for single
More informationIRS Issues New Proposed Cafeteria Plan Regulations
IRS Issues New Proposed Cafeteria Plan Regulations On August 6, 2007, the Internal Revenue Service (IRS) published new proposed regulations on cafeteria plans ( proposed regulations for a copy visit http://edocket.access.gpo.gov/2007/pdf/e7-14827.pdf).
More informationNew Group Application East Region New business effective Jan. 1, 2011
New Group Application East Region New business effective Jan. 1, 2011 2-50 Eligible employees PriorityHMO SM PriorityPOS SM PriorityPPO SM Revised 10/10 Life just got a little easier. This comprehensive
More informationIRS gives first glimpse of rules on ACA excise tax on high cost health plans and asks for input
from Human Resource Services IRS gives first glimpse of rules on ACA excise tax on high cost health plans and asks for input February 27, 2015 In brief The IRS has issued a Notice laying out some initial
More informationApplication of Market Reform and other Provisions of the Affordable Care Act to HRAs, Health FSAs, and Certain other Employer Healthcare Arrangements
Application of Market Reform and other Provisions of the Affordable Care Act to HRAs, Health FSAs, and Certain other Employer Healthcare Arrangements Notice 2013-54 I. PURPOSE AND OVERVIEW This notice
More informationPayFlex Health Savings Account (HSA) Frequently Asked Questions
OVERVIEW AND ELIGIBILITY REQUIREMENTS What is a Health Savings Account? A Health Savings Account ( HSA ) is a tax-advantaged healthcare account created for the purpose of saving and paying for qualified
More informationRETIREE BENEFITS Health Reimbursement Arrangement (HRA).
RETIREE BENEFITS 1 RETIREE BENEFITS Health Reimbursement Arrangement (HRA). Benefits for Union Pacific s Medicare-eligible retirees and their Medicare- eligible spouses and/or dependents. 2 UNION PACIFIC
More informationFrequently Asked Questions Affordable Care Act (ACA) Taxes: Reinsurance Tax and Insurer Tax May 16, 2013
Frequently Asked Questions Affordable Care Act (ACA) Taxes: Reinsurance Tax and Insurer Tax May 16, 2013 Background: One of the goals of the Affordable Care Act (ACA) is to ensure that everyone involved
More informationU.S. Department of Labor TECHNICAL RELEASE 2013-03 DATE: SEPTEMBER 13, 2013 SUBJECT: I. PURPOSE AND OVERVIEW
U.S. Department of Labor Employee Benefits Security Administration Washington, D.C. 20210 TECHNICAL RELEASE 2013-03 DATE: SEPTEMBER 13, 2013 SUBJECT: APPLICATION OF MARKET REFORM AND OTHER PROVISIONS OF
More informationDefined Contribution Approach to Benefit Planning
Defined Contribution Approach to Benefit Planning 1 Sue Sieger, ACFCI, CAS Senior Compliance Consultant Employee Benefits Corporation sue.sieger@ebcflex.com The material provided in this webinar is by
More informationGUIDE TO HEALTH CARE REFORM S TAX PENALTIES
The GUIDE TO HEALTH CARE REFORM S TAX PENALTIES Calculate Your Health Insurance Tax Penalty 2 Introduction The Affordable Care Act (ACA) requires certain employers and employees to purchase health insurance
More informationHealth Care Reform Act: Who s Paying the Bill?
Health Care Reform Act: Who s Paying the Bill? Walter Miller Schwabe, Williamson & Wyatt P.C. 800 Willamette Street, Suite 600 Eugene, OR 97401 (541) 686-3299 wmiller@schwabe.com TABLE OF CONTENTS Page
More informationCongress Repeals Expanded 1099 Reporting and IRS Issues W-2 Reporting Guidance. Edward Fensholt and Mark Holloway
VOL. 24, NO. 3 AUTUMN 2011 BENEFITS LAW JOURNAL Federal Benefits Developments Congress Repeals Expanded 1099 Reporting and IRS Issues W-2 Reporting Guidance Edward Fensholt and Mark Holloway The federal
More informationHealth Care Reform New Restrictions on Tax-Favored Health Coverage for HRAs, FSAs, Premium Payment or Reimbursement Plans, and Cafeteria Plans
Caring For Those Who Serve 1901 Chestnut Avenue Glenview, Illinois 60025-1604 1-800-851-2201 www.gbophb.org November 21, 2013 [updated July 29, 2015] Health Care Reform New Restrictions on Tax-Favored
More informationMEMORANDUM. Affordable Care Act (ACA) Action Items for Supplemental Benefit Funds to Consider
333 West 34th Street New York, NY 10001-2402 T 212.251.5000 F 212.251.5490 www.segalco.com MEMORANDUM To: From: Lynette Metz Lawrence Singer, Karen Johnson Date: July 19, 2013 Re: Affordable Care Act (ACA)
More informationIRS NOTICE 2015-87: ADDITIONAL GUIDANCE ON HRAS, ACA REPORTING, HEALTH FSA CARRYOVERS AND MORE
Attorneys at Law Friday, January 29, 2016 IRS NOTICE 2015-87: ADDITIONAL GUIDANCE ON HRAS, ACA REPORTING, HEALTH FSA CARRYOVERS AND MORE By: Gabriel S. Marinaro, Esq. In December of 2015, the IRS issued
More informationSelected Employer Provisions in the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010
Selected Employer Provisions in the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 This chart outlines, in depth, selected provisions in the Patient
More informationHealth Savings Account (HSA) Contribution Rules
Provided by BB&T Insurance Services, Inc., McGriff, Seibels & Williams, Inc., BB&T Insurance Services of California, Inc., and Precept Insurance Solutions, LLC Health Savings Account (HSA) Contribution
More informationHealth care reform at-a-glance. December 2013
December 2013 Employer mandate Play or pay penalty for failing to offer coverage to at least 95% of all full-time employees (FTE) and children if any FTE gets subsidy in exchange $2,000 (indexed) times
More informationHealth care reform at-a-glance. August 2014
Health care reform at-a-glance August 2014 Employer mandate Shared responsibility payment for failing to offer coverage to at least 95%* of all fulltime employees (FTE) and children if any FTE gets subsidy
More informationHealth FSA-HRA-HSA Comparison Chart
Revised December 2014 Health FSA-HRA-HSA Comparison Chart Health Flexible Spending Internal Revenue Code source Section 125 (cafeteria plans) applies to an arrangement where employees have a choice among
More informationWhat s News in Tax Analysis That Matters from Washington National Tax
What s News in Tax Analysis That Matters from Washington National Tax The Impact of the Affordable Care Act on International Assignees and Their Health Care Plans Employers and individuals in the United
More informationHealth Reimbursement Arrangement Frequently Asked Questions
Health Reimbursement Arrangement Frequently Asked Questions What is a Health Reimbursement Arrangement (HRA)? The HRA is an employer-funded health care reimbursement account. The employee incurs eligible
More informationHealth Savings Accounts: Common Questions and Their Answers
Health Savings Accounts: Common Questions and Their Answers I. General HSAs II. Qualified High-Deductible Health Plan HDHPs III. Contributions to an HSA Distributions BlueAccount I. General HSAs I.1 What
More informationSummary of Provisions Affecting Employer-Sponsored Insurance
JULY 2014 AFFORDABLE CARE ACT Summary of Provisions Affecting Employer-Sponsored Insurance Much of the public discussion about the Affordable Care Act (ACA) has focused on the expansion of coverage to
More informationAdvisory. The Health Care Reform Bill: How Will Its Tax Provisions Impact You and Your Business? April 2010. Impact on Employers
certified public accountants business consultants Advisory April 2010 The Health Care Reform Bill: How Will Its Tax Provisions Impact You and Your Business? The recently passed Patient Protection and Affordable
More informationWHAT HEALTH CARE REFORM
WHAT HEALTH CARE REFORM MEANS FOR YOUR BUSINESS Celebrating A Tradition our of Excellence 85th Year of Since Excellence 1924 2322 Tremont Drive Baton Rouge, LA 70809 225.928.4770 www.htbcpa.com 178 Del
More informationCity of West University Place Summary of Employee Benefits
of West University Place Summary of Benefits Regular Status: If you successfully complete the provisional period you may become a regular full time employee. Work Week: 40 hour work week (fire personnel
More informationEMPLOYEE BENEFITS BULLETIN
EMPLOYEE BENEFITS BULLETIN January 20, 2010 Revised COBRA Model Notices Issued Reflecting Subsidy Extension The Department of Labor (DOL) issued updated model notices to reflect the COBRA subsidy extension
More informationAdvanced Cafeteria Plans. 2016 Employee Benefits Corporation. Copyright 2015 Employee Benefits Corporation
Advanced Cafeteria Plans 2016 Employee Benefits Corporation 2 1 Erin Freiberg, JD Compliance Attorney Employee Benefits Corporation The material provided in this webinar is by Employee Benefits Corporation
More informationHealth Savings Account HSA Summary
Health Savings Account HSA Summary Effective January 1, 2016 TABLE OF CONTENTS INTRODUCTION... 3 WHO IS ELIGIBLE... 3 IRS REQUIREMENTS... 3 WHEN IS ELIGIBILITY DETERMINED?... 3 DO MY SPOUSE & I ESTABLISH
More informationEmployer Reporting of Health Coverage Code Sections 6055 & 6056
Brought to you by Hickok & Boardman HR Intelligence Employer Reporting of Health Coverage Code Sections 6055 & 6056 The Affordable Care Act (ACA) created new reporting requirements under Internal Revenue
More informationHealth Savings Accounts
Raymond James & Associates, Inc. Anne Bedinger, WMS Vice President, Investments 2255 Glades Road, Suite 120-A Boca Raton, FL 33431 561-981-3661 800-327-1055 Anne.Bedinger@RaymondJames.com www.annebedinger.com
More informationHealth Care Reform. Employer Action Overview
Health Care Reform Page 1 of 6 Health Care Reform Immediatemmediate Employer Action Required Notes Employers must provide a reasonable break time for employees who are nursing mothers to express breast
More informationhttp://www.irs.gov/newsroom/article/0,,id=205364,00.html
Page 1 of 5 COBRA Questions and Answers: Administration and Eligibility AE-1 Q. Now that the legislation has passed, how is this going to be communicated to the employer/payroll community? A. The IRS will
More informationHealth Care Reform Frequently Asked Questions
Health Care Reform Frequently Asked Questions On March 23, 2010, President Obama signed federal health care reform into law, also known as the Patient Protection and Affordability Act. A second, or reconciliation
More informationPRE-EXISTING CONDITION INSURANCE POOL ( PCIP ) COMPREHENSIVE MAJOR MEDICAL EXPENSE POLICY
PRE-EXISTING CONDITION INSURANCE POOL ( PCIP ) COMPREHENSIVE MAJOR MEDICAL EXPENSE POLICY Administered By: The Arkansas Comprehensive Health Insurance Pool ( CHIP ) and its subcontractor, BlueAdvantage
More informationTax Implications of the Affordable Care Act
Year-by-Year Guide Tax Implications of the Affordable Care Act 1 Year-by-Year Guide: Tax Implications of the Affordable Care Act Introduction The Patient Protection and Affordable Care Act, commonly referred
More informationHRA used to purchase health policy in the individual market. HRA used to purchase individual health policy through a public or private exchange
October 18, 2013 Authors: Kathryn B. Amin, Jon W. Breyfogle, Christine L. Keller, William F. Sweetnam and Brigen L. Winters If you have questions, please contact your regular Groom attorney or any of the
More informationStraight Answers to Your HSA Questions HEALTH SAVINGS ACCOUNT
Straight Answers to Your HSA Questions HEALTH SAVINGS ACCOUNT HSA OVERVIEW What is a Health Savings Account? A Health Savings Account (HSA) is a tax-exempt trust or custodial account established for the
More informationARRA S IMPACT ON COBRA
Legislative Update February 26, 2009 ARRA S IMPACT ON COBRA The American Recovery and Reinvestment Act of 2009 (ARRA) was signed into law by President Barack Obama on February 17, 2009. Although the provisions
More informationDecreasing Costs. Employee Benefits Tax. Medical Device Excise Tax. What It Is
Decreasing Costs Employee Benefits Tax Starting in 2018, the ACA will impose a 40 percent excise tax on high-value plans, where the value of benefits exceeds thresholds of $10,200 for individuals and $27,500
More information