The IRS has updated its existing Q&As on the Affordable Care Act’s employer shared responsibility (“pay or play”) requirements to reflect adjustments to the pay or play penalty and affordability amounts. Those adjustments are as follows: For calendar year 2017, the applicable per-employee dollar penalties of $2,000 and $3,000 are adjusted to $2,260 and $3,390,…
May 4th the House passed the American Health Care Act (AHCA.) This chart (courtesy of NAHU.org) displays the content of the legislation. The bill will now be sent to the U.S. Senate where a number of changes are expected to be made. Until this bill is passed by the U.S. Senate and signed into law,…
The Internal Revenue Service (IRS) has announced the 2018 inflation-adjusted amounts for Health Savings Accounts (HSAs) as determined under the Internal Revenue Code. Annual Contribution Limitation For calendar year 2018, the annual limitation on HSA deductions for an individual with self-only coverage under a high deductible health plan is $3,450 (up from $3,400 for 2017).…
Appeals Due Within 90 Days Health Insurance Marketplaces are now sending letters to notify certain employers that one or more of their employees has been determined eligible for advance premium tax credits and cost-sharing reductions and has enrolled in a Marketplace plan. Because these events may trigger penalties under the Affordable Care Act’s “pay or…
ALEs Must Comply with ACA’s ‘Pay or Play’ Provisions An employer which has at least 50 full-time employees, including full-time equivalent employees (FTEs), on average during the prior year is generally considered an “applicable large employer” (ALE) under the Affordable Care Act (ACA) for the current calendar year. These employers are subject to the ACA’s…
Designation Determined by Hours Worked, Not Employer Classification The employer shared responsibility provisions of the Affordable Care Act (also known as “pay or play”) require applicable large employers (ALEs)—generally those with at least 50 full-time employees, including full-time equivalent employees (FTEs)—to offer affordable health insurance that provides a minimum level of coverage to full-time employees…
QSEHRAs Must Satisfy Certain Requirements As a reminder, a recent law allows certain small employers to offer new “qualified small employer health reimbursement arrangements” (QSEHRAs) to reimburse employees for qualified medical expenses, including individual health insurance premiums. Background Under prior agency guidance, stand-alone HRAs (except for retiree-only HRAs and HRAs consisting solely of excepted benefits)…
To avoid potential noncompliance penalties, employers should confirm the accuracy of all Affordable Care Act (ACA) information returns and correct any errors as soon as possible with both the IRS and their employees. Errors on Forms 1094-C and 1095-C Forms 1094-C and 1095-C are used by applicable large employers to satisfy their reporting obligations. To correct information…
In business, and in life, among the most important ways to manage risk is through insurance. For certain types of companies — particularly start-ups and small businesses — one major threat is the sudden loss of an owner or hard-to-replace employee. To safeguard against this risk, insurers offer key person insurance. Under a key person…
If your company offers an Anthem medical plan that complies with health care reform law, you may notice that the name of the plan’s drug list (also called a formulary) has changed. The new name is the Traditional Open Drug List. The medications included on the drug list have not changed. The goal of the…
