Plans that are not fully in compliance with the Affordable Care Act (ACA) but are not “grandfathered” are referred to as “grandmothered” plans. “Grandfathered” plans had to be in effect prior to enactment of the ACA on March 23, 2010. “Grandmothered” plans could have been purchased subsequent to March 23, 2010 but before December 31,Continue reading “Grandmothered Plans — On Life Support?”
Category Archives: Uncategorized
Electronic Notice Distribution Requirements — Challenging and in Need of Change
Employers and employees have embraced benefit portals to enroll in coverage and access benefit information. Despite the near ubiquity of electronic benefits media, rules that govern the electronic distribution of materials required to be disclosed by ERISA haven’t kept pace – having been written more than a decade ago. Today’s rules have an over-arching requirementContinue reading “Electronic Notice Distribution Requirements — Challenging and in Need of Change”
Tax Reform Changes HSA Limit
In the spirit of “beware what you wish for” the recent tax reform law included a small surprise for those with health savings accounts (HSAs). Page 400 of IRS Bulletin number 2018-10 contains a revision -downward – of the HSA family contribution limit. The revision is due to a change in how the amount isContinue reading “Tax Reform Changes HSA Limit”
Medicare and COBRA Can Cause Confusion
Employees – and their employers – are often confused when the employee who is Medicare-eligible retires. Some employees want to continue their coverage under COBRA because they’ve met their deductible for the year or simply because they’re familiar with the employer plan in which they were enrolled while working. But, making the decision to takeContinue reading “Medicare and COBRA Can Cause Confusion”
ACA’s Individual Mandate — Still in Force
The new tax law passed by Congress and signed by the President does not repeal the individual mandate as many people have assumed. The tax law actually zeroes out the individual mandate penalty. And, importantly, this action takes effect in 2019. The actual law text is: SEC. 11081. ELIMINATION OF SHARED RESPONSIBILITY PAYMENT FOR INDIVIDUALSContinue reading “ACA’s Individual Mandate — Still in Force”
Cautions and Caveats Regarding Health Care Sharing Ministries
There has been a significant increase in enrollment in health care sharing ministries over the years since enactment of the Affordable Care Act (ACA). ACA specifically referenced health care sharing ministries, allowing an exemption from the individual mandate for individuals participating in one. According to the Alliance of Health Care Sharing Ministries there are moreContinue reading “Cautions and Caveats Regarding Health Care Sharing Ministries”
IRS Pushes Back Due Date for ACA’s Employer Reporting
The IRS delivered a highly coveted holiday gift to employers when it announced that employers could delay sending 1095-B and 1095-C forms to employees. Notice 2018-06 was published just before Christmas. The notice allows applicable large employers (ALEs) subject to the ACA filing requirements to furnish the required notices to individuals as late as MarchContinue reading “IRS Pushes Back Due Date for ACA’s Employer Reporting”
20 Things to Know About QSEHRAs
QSEHRAs allow small employers to provide health reimbursement arrangement (HRA) funds for employees to purchase individual coverage. They were part of the 21st Century Cures Act enacted on December 13, 2016. While the concept may sound simple enough, recent IRS guidance shows that these arrangements are complex tax arrangements. Notice 2017-67 provides IRS guidance onContinue reading “20 Things to Know About QSEHRAs”
ACA Employer Reporting Penalties Increase for 2018
Many employers are getting unwelcome mail from the IRS –Letter 226J- assessing employer shared responsibility penalties. Early reports of employers receiving these letters are that errors made on the 1094-C and 1095-C forms may be the trigger. Hopefully, these errors can be corrected and many of the penalties will be abated. But, this experience pointsContinue reading “ACA Employer Reporting Penalties Increase for 2018”
30 Days to Act on IRS Letter 226J
Nestled amid holiday cards may be a less welcome letter from the IRS. The IRS has confirmed that the initial notices to employers that they may owe employer shared responsibility (ESR) penalties are going out before year-end. Letter 226J will address preliminary calculations of amounts employers owe for tax year 2015. Employers subject to theContinue reading “30 Days to Act on IRS Letter 226J”
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