So here we are, on the heels of a presidential election, a bit over a year away from the full effects of the Affordable Care Act (Health Reform) and employers need to make sure they are remaining compliant or it could cost, a lot. Below is a time-line and essential changes that you may want to earmark. In past posts I have shared these with you but thought were important enough for a re-visit.
2012
1) August, 2012-Rebates will be issued by insurers if medical loss ratio is less than 80% in small group market and 85% in large group market. Rebates will be issued at the employer level.
2) August, 2012-Non-Grandfathered Health plans will be required to offer coverage for Gestational Diabetes Screening and Contraceptive for non-religious, non-exempt employers.
3) Summary of Benefits Coverage (SBC)-Applies to first Open Enrollment period after September 23, 2012. Insurers and Plan Administrators must provide a summary of benefits and coverage to employers and plan participants. For employer groups the responsibility to get these to the employees relies primarily on the employer. Under this provision, there is a 60 Day Advance Notice of Material Change where carriers must provide a 60 day advance notification if any material changes to the coverage are to go into effect.
4) October, 2012-Comparative Effectiveness Fee-Plans that began after 10-2-2011 will be required to pay $1 per covered life for research to determine effectiveness of medical treatments. This is the portion of the law that concerned a great many people as they believed that these panels would undermine life saving care in place of cost savings. This fee goes up to $2 per life in 2013 and supposedly goes away in 2019.
5) Jan, 2013-Flexible Spending Account (FSA) spending limits capped at $2500 for Individual and $5000 for family. Cap applies to plan years that began after December 31, 2012.
6) 2012 Tax Year-W-2's distributed in 2013 for tax year 2012 for employers who issue more than 250 W-2's will be required to include the total cost of group medical coverage.
Showing posts with label W-2. Show all posts
Showing posts with label W-2. Show all posts
Wednesday, September 19, 2012
Tuesday, June 19, 2012
PPACA-HEALTH REFORM UPDATE
As we all wait for the Supreme Court to rule on the future of health reform, there are items in the law that will be taking place in the near future. Below is a listing of those items:
1) August, 2012-Rebates will be issued by insurers if medical loss ratio is less than 80% in small group market and 85% in large group market. Rebates will be issued at the employer level.
2) August, 2012-Non-Grandfathered Health plans will be required to offer coverage for Gestational Diabetes Screening and Contraceptive for non-religious, non-exempt employers.
(I am thinking that most carriers will offer this coverage as its easier for them to manage than trying to determine Grandfathered and Non-Grandfathered eligibility)
3) Plan years beginning after September 23, 2012-Summary of Benefits will need to be updated to include more easily readable and understandable benefit descriptions. This responsibility will fall mainly on insurers for fully insured plans.
4) October, 2012-Comparative Effectiveness Fee-Plans that began after 10-2-2011 will be required to pay $1 per covered life for research to determine effectiveness of medical treatments. This is the portion of the law that concerned a great many people as they believed that these panels would undermine life saving care in place of cost savings. This fee goes up to $2 per life in 2013 and supposedly goes away in 2019.
5) Jan, 2013-Flexible Spending Account (FSA) spending limits capped at $2500 for Individual and $5000 for family. Cap applies to plan years that began after December 31, 2012.
6) 2012 Tax Year-W-2's distributed in 2013 for tax year 2012 for employers who issue more than 250 W-2's will be required to include the total cost of group medical coverage.
1) August, 2012-Rebates will be issued by insurers if medical loss ratio is less than 80% in small group market and 85% in large group market. Rebates will be issued at the employer level.
2) August, 2012-Non-Grandfathered Health plans will be required to offer coverage for Gestational Diabetes Screening and Contraceptive for non-religious, non-exempt employers.
(I am thinking that most carriers will offer this coverage as its easier for them to manage than trying to determine Grandfathered and Non-Grandfathered eligibility)
3) Plan years beginning after September 23, 2012-Summary of Benefits will need to be updated to include more easily readable and understandable benefit descriptions. This responsibility will fall mainly on insurers for fully insured plans.
4) October, 2012-Comparative Effectiveness Fee-Plans that began after 10-2-2011 will be required to pay $1 per covered life for research to determine effectiveness of medical treatments. This is the portion of the law that concerned a great many people as they believed that these panels would undermine life saving care in place of cost savings. This fee goes up to $2 per life in 2013 and supposedly goes away in 2019.
5) Jan, 2013-Flexible Spending Account (FSA) spending limits capped at $2500 for Individual and $5000 for family. Cap applies to plan years that began after December 31, 2012.
6) 2012 Tax Year-W-2's distributed in 2013 for tax year 2012 for employers who issue more than 250 W-2's will be required to include the total cost of group medical coverage.
Thursday, May 10, 2012
PPACA-W-2 REPORTING-IRS GUIDANCE CHART
Below please see additional guidance from the IRS regarding reporting value of employee benefits on form W-2. If you have a hard time reading please go directly to the IRS site here
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Tuesday, January 24, 2012
PPACA....IT'S TIME.....REPORTING HEALTH COVERAGE COST ON W-2
The provision that required employers to report the cost of Medical, Dental and Vision coverage was supposed to go in effect for reporting year 2011. However, that was delayed and the IRS has issued guidance for reporting these amounts (2012-9) for 2012 W-2's.
In a nutshell, the IRS stated that all employers who have issued more than 250 W-2's will be required to show the value of the employer sponsored medical, dental and vision coverage on their employees 2012 W-2's. The cost of coverage does not include contributions made to a Health Savings Account (HSA), Medical Savings Account (MSA) or Health Reimbursement Arrangements.
In calculating the cost of coverage to be reported, the IRS indicated that this amount would be the same amount used to calculate the COBRA cost, not including the 2% administration fee, if any.
Those employers who file less that 250 W-2's are exempt from this provision at least through 2012.
The big question is why does the IRS want this information? They state it's for informational purposes only. Two thoughts: This could be a way for the Fed to determine if their is coverage in place in regards to the "no coverage penalty" or a way for the Fed to tax those "Cadillac Plans" in 2018.
In a nutshell, the IRS stated that all employers who have issued more than 250 W-2's will be required to show the value of the employer sponsored medical, dental and vision coverage on their employees 2012 W-2's. The cost of coverage does not include contributions made to a Health Savings Account (HSA), Medical Savings Account (MSA) or Health Reimbursement Arrangements.
In calculating the cost of coverage to be reported, the IRS indicated that this amount would be the same amount used to calculate the COBRA cost, not including the 2% administration fee, if any.
Those employers who file less that 250 W-2's are exempt from this provision at least through 2012.
The big question is why does the IRS want this information? They state it's for informational purposes only. Two thoughts: This could be a way for the Fed to determine if their is coverage in place in regards to the "no coverage penalty" or a way for the Fed to tax those "Cadillac Plans" in 2018.
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