Tuesday, December 31, 2013

PPACA Minimum Essential Coverage and Shared Responsibility Reporting and Disclosure Requirements

This is from ERISA Diagnostics

... Where do the proposed regulations stand?

Comment letters were due and hearings held in November. A quick review of a sample of the comment letters revealed:

    • a request for further simplification of the reporting requirements
    • the tremendous burden that will be placed on reporting entities
    • request for use of a certification regarding the provisions of the shared responsibility requirements

Key points for plan sponsors to remember

    1. Insurance companies will be responsible for the reporting and disclosure for insured plans; employers will be responsible for the reporting and disclosure for self-insured plans but may outsource the requirement to their third party administrator.
    2. The reporting is on a calendar year basis regardless of the plan or policy year.
    3. If you are part of a controlled group, the reporting is required for each member of the controlled group.
    4. A written statement must be provided to the individuals/employees included in the IRS reports. As noted earlier, the IRS is considering consolidating the statements into one report.
    5. The reports and statements are first due in 2016; (January 31 to the individual; February 28 to the IRS if filed on paper, March 31 if filed electronically). Note the filing due date is the same as W-2 and 1099 reporting.
    6. The reporting requirements are detailed and numerous; confirm that either your insurance company or third party administrator are aware of the requirements and will be able to comply. Don’t forget to get it in writing, stay tuned for more developments and hope for continued simplification. ...