February 06, 2019 - Health Care Reform Update

Form 1095 Furnishing Deadline is March 4

The IRS deadlines for filing and furnishing Forms 1094 and 1095 are fast approaching. As a reminder:

• Employers with 50 or more full-time employees (including full-time equivalent employees) generally must furnish a Form 1095-C to all full-time employees no later than March 4, 2019.
• Self-insured employers with fewer than 50 or more full-time employees (including full-time equivalent employees) generally must furnish a Form 1095-B to all responsible individuals—typically the primary insured, an employee or former employee, or other related person named on the application for insurance—no later than March 4, 2019. 
• All Forms 1094 and 1095 must be filed with the IRS no later than February 28, 2019 (or April 1, 2019, if filing electronically).

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December 15, 2018 - Health Care Reform Update

Further Legal Developments Expected

A federal district court in Texas has ruled the entirety of the Affordable Care Act (ACA) unconstitutional. However, the decision is expected to be swiftly appealed. In the meantime, pending further legal developments, the ACA remains in effect.

© 2019 HR 360, Inc.

November 30, 2018 - Health Care Reform Update

Furnishing Deadline Moved to March 4

The IRS has moved back the deadlines by which employers must furnish Forms 1095-C and 1095-B in early 2019. As a result:

• Employers with 50 or more full-time employees (including full-time equivalent employees) generally must furnish a Form 1095-C to all full-time employees no later than March 4, 2019.
• Self-insured employers with fewer than 50 or more full-time employees (including full-time equivalent employees) generally must furnish a Form 1095-B to all responsible individuals—typically the primary insured, an employee or former employee, or other related person named on the application for insurance—no later than March 4, 2019. 

The deadline for employers to file all Forms 1094 and 1095 with the IRS remains February 28, 2019 (or April 1, 2019, if filing electronically).

© 2019 HR 360, Inc.

November 15, 2018 - Health Care Reform Update

Contribution Limit to Increase $50 in 2019

The IRS has announced that the contribution limit for health flexible spending arrangements (health FSAs) will be $2,700 in 2019. For 2018, the contribution limit is $2,650.

© 2019 HR 360, Inc.

October 23, 2018 - Health Care Reform Update

If Finalized, Proposal Would Become Effective for 2020 Plan Year

A new proposed rule would permit all employers to offer health reimbursement arrangements (HRAs) to reimburse employees' individual health insurance policy premiums if certain conditions are met. Currently, many employers are prohibited from offering such HRAs. If finalized, the proposal would be effective for plan years beginning on or after January 1, 2020.

In general, the proposal would permit an HRA to reimburse premiums for individual health insurance policies only if:

• Individuals verify their enrollment in individual health insurance coverage;
• The HRA is offered on the same terms to all employees within a class;
• The employer does not offer both a traditional group health plan and the HRA to the same class of employees;
• Participants can opt out of the HRA annually; and
• Employers provide eligible participants with a written notice describing the HRA's terms.

Click here for more information on the proposal.  

© 2019 HR 360, Inc.

October 01, 2018 - Health Care Reform Update

Form Instructions Also Released

The IRS has released the Forms 1094-C, 1095-C, 1094-B, and 1095-B that employers will use in early 2019 to report on the group health insurance coverage they offered during the 2018 calendar year. Instructions on how to complete Forms 1094-C and 1095-C and Forms 1094-B and 1095-B have also been released.

© 2019 HR 360, Inc.

September 13, 2018 - Health Care Reform Update

Policy Effective for Tax Year 2018

The Centers for Medicare and Medicaid Services (CMS) has announced that individuals will be able to claim hardship exemptions from the Affordable Care Act's individual mandate for tax year 2018 on their 2018 federal income tax return. Previously, individuals were only permitted to claim these exemptions on their federal income tax return if first approved by the Health Insurance Marketplace. In addition, individuals claiming a hardship exemption will no longer be required to present documentary evidence or provide a written explanation of their hardship upon claiming the exemption.

Among other things, individuals are generally eligible to claim a hardship exemption for any month before, during, or after he or she:

• Experienced a fire, flood, or other natural or human-caused disaster;
• Filed for bankruptcy; or
• Had unpaid medical expenses that resulted in substantial debt.

For more information, please read the CMS announcement.

© 2019 HR 360, Inc.

August 03, 2018 - Health Care Reform Update

New Rule Loosens Current Restrictions

Effective October 2, 2018, a new rule will allow individuals to purchase short-term, limited-duration health insurance coverage for a period of less than 12 months, and renew such coverage for up to 36 months. Under current law, the maximum coverage period for short-term, limited-duration health insurance is less than 3 months, and these policies cannot be renewed.

Notably, short-term, limited-duration health insurance is:

• Not required to comply with the Affordable Care Act's ban on pre-existing condition exclusions and lifetime and annual dollar limits.
• Not required to comply with the Affordable Care Act's essential health benefits requirement, which requires individual health insurance policies to cover, among other things, hospitalizations, emergency services, and maternity care.
• Not "minimum essential coverage," meaning that policyholders may remain liable for an individual mandate penalty for any month in 2018.

Click here to read the new rule. A fact sheet is also available.

© 2019 HR 360, Inc.

June 19, 2018 - Health Care Reform Update

Rule Permits Associations Based on Industry or Geography

The U.S. Department of Labor (DOL) has issued a new rule that allows employers to join together as a single group to offer group health insurance coverage to employees, working owners (including those without other employees), and their spouses and dependents as part of an "association health plan." The rule allows association health plans to be formed on the basis of industry or geography, such as by state, city, county, or multi-state metropolitan area.

The new rule subjects association health plans to the nondiscrimination rules currently applicable to large group coverage under the Health Insurance Portability and Accountability Act (HIPAA), as amended by the Affordable Care Act (ACA). These rules prohibit discrimination based on a health factor or within groups of similarly situated individuals, but do generally permit plans to impose different eligibility provisions and costs based on bona-fide employment-based classifications, such as full-time versus part-time status.

Click here for more information from the DOL.

For more on the nondiscrimination rules applicable to group health plans, check out our Health Insurance Nondiscrimination Rules page.

© 2019 HR 360, Inc.

June 01, 2018 - Health Care Reform Update

Employers Have Opportunity to Respond Before 'Pay or Play' Penalty Assessment

The Internal Revenue Service (IRS) is currently issuing Letter 226-J to certain applicable large employers (ALE)—generally those with at least 50 full-time employees, including full-time equivalent employees, on average during the prior year—it believes owe a penalty for failing to comply with the Affordable Care Act's employer shared responsibility provisions ("pay or play" provisions). In conjunction with Letter 226-J, employers will receive Form 14764, which they can use to respond to Letter 226-J. Employers who submit Form 14764 to the IRS will generally receive one of 4 letters back:

• Letter 227-J, which acknowledges receipt of Form 14764 and the employer's agreement to pay the penalty;
• Letter 227-K, which acknowledges receipt of Form 14764 and shows that the penalty has been nullified;
• Letter 227-L, which acknowledges receipt of Form 14764 and shows that the penalty has been revised; or
• Letter 227-M, which acknowledges receipt of Form 14764 and shows that the penalty amount did not change.

For more information on IRS "pay or play" penalty letters, click here.

© 2019 HR 360, Inc.

May 21, 2018 - Health Care Reform Update

Percentage Up from 2018

Under the employer shared responsibility ("pay or play") provisions of the Affordable Care Act, applicable large employers—generally those who had 50 or more full-time employees (including full-time equivalent employees)—may be subject to a penalty if they do not offer affordable coverage that provides minimum value to their full-time employees and their dependents. For plan years beginning in 2019, the Internal Revenue Service has announced that coverage will generally be considered affordable if the employee's required contribution for the lowest cost self-only health plan offered is 9.86% or less of his or her household income for the taxable year. For plan years beginning in 2018, the applicable percentage is 9.56%.

Given that employers are unlikely to know an employee's household income, they may use a number of safe harbors to determine affordability, including reliance on Form W-2 wages.

© 2019 HR 360, Inc.

April 19, 2018 - Health Care Reform Update

Policies Renewed Under Extended Transitional Policy Must End by December 31, 2019

A previously extended transitional policy which allows health insurance issuers, at their option, to continue group coverage that would otherwise be terminated or cancelled has been further extended to policy years beginning on or before October 1, 2019, provided that all policies end by December 31, 2019. Health insurance issuers that renew coverage under the extended policy are required to provide standard notices to affected small businesses for each policy year.

Policies subject to the transitional relief will not be considered to be out of compliance with key Affordable Care Act provisions, including:

• The requirement to cover a core package of items and services known as essential health benefits;
• The requirement that any variations in premiums be limited with regard to a particular plan or coverage to age, tobacco use, family size, and geography;
• The requirements regarding guaranteed availability and renewability of coverage; and
• The requirements relating to coverage for individuals participating in approved clinical trials.

Click here to review the extended transitional policy.

© 2019 HR 360, Inc.

April 10, 2018 - Health Care Reform Update

HHS Issues Key Rule for 2019

A new rule from the U.S. Department of Health and Human Services (HHS) addresses, among other things, the requirement under the Affordable Care Act that non-grandfathered group health plans limit annual out-of-pocket cost-sharing for coverage of essential health benefits under the plan. Under the rule, these out-of-pocket expenses may not exceed $7,900 for self-only coverage or $15,800 for family coverage in 2019.

© 2019 HR 360, Inc.

April 10, 2018 - Health Care Reform Update

Rule Effective for Plan Year 2018

The U.S. Department of Health and Human Services (HHS) has issued a new rule that allows employers to directly enroll in SHOP (Small Business Health Options Program) coverage through a SHOP-registered agent or broker. This enrollment approach is now generally available in federally-facilitated SHOPs (FF-SHOPs), including state-based Exchanges using the federal platform for SHOP, for plan years beginning on or after January 1, 2018. State-based Exchanges operating their own SHOPs can also adopt this new approach.

For more information, please contact the SHOP that applies in your state.

© 2019 HR 360, Inc.