Posts Tagged: Affordable Care Act

Form W-2 Reporting Delayed

in Affordable Care Act, Tax Issues

The Affordable Care Act provides generally that the aggregate cost of employer-sponsored health coverage must be reported on a Form W-2.   For this purpose, the aggregate cost is to be determined under rules similar to the rules for COBRA continuation coverage.  This rule is effective for taxable years beginning on or after January 1, 2011.  See, Code Section 6051(a)(14). This morning, the IRS issued Notice 2010-69, which stated that the Form W-2 reporting requirement is not mandatory for Forms W-2 issued for2011.  Accordingly, an employer will not be treated as failing to meet the requirements for 2011, and will not be subject to any penalties for failure to meet… Continue Reading

DOL FAQs Part II – Rescissions and More

in Affordable Care Act

On this Columbus Day the government is closed (and some of the downtown subway system, which is another topic entirely), but the Department of Labor is still releasing Affordable Care Act guidance.  This guidance in the form of FAQs was placed on the web this morning and is joining the other set of FAQs previously released on September 20th.  The new set of Affordable Care Act FAQs – aptly named Part II by the DOL – includes questions on grandfathering, rescissions, and preventive care.  However, the most interesting FAQ covers rescissions.  The DOL sets forth two examples and states that the examples are not considered… Continue Reading

ERRP Plan Participant Notice

in Affordable Care Act

The requirement to distribute ERRP notices to plan participants have caught some plan sponsors by surprise.  In general, if you will be receiving ERRP funds, you must distribute a required model notice to plan participants.  The notice must be sent no later than when you begin to receive the ERRP funds.  However, plan sponsors can distribute the notice earlier, and many are planning to distribute the notices with their annual enrollment materials for 2011.  For a copy of the model notice, see the following link:

Mini-Med Plans – Round 2

in Affordable Care Act

As I previously discussed, HHS has indicated a willingness to make an exception in the upcoming MLR regulations for mini-med plans.  However, currently, it is unclear how and to what extent that exception will apply.  Unfortunately, employers need to make decisions now for annual enrollment materials.  Because no one knows what the MLR exception will look like, one solution to this issue is to simply self-insure your mini-med option.  A self-insured mini-med option is not subject to the MLR regulations.  However, remember, you still need to file for a waiver from the annual limits even if the option is self-insured.

Relief for Mini-Med Plans from Restrictive MLR Rules

in Affordable Care Act

Yesterday, many plan sponsors of mini-med plans publicly noted that the upcoming MLR regulations may force them to terminate their mini-med plans. Currently, the NAIC has published draft rules. Next month HHS is required to take that draft and turn it into proposed regulations on the medical loss ratio standards. Moments ago the Director of OCIIO released a statement saying in part that when OCIIO releases the proposed MLR regulations, it fully intends to exercise discretion under the new law to address the special circumstances of mini-med plans in the medical loss ratio calculations. According to the Affordable Care Act,… Continue Reading