Posts Tagged: Insured Plans

Updated MLR Rules Released

in Affordable Care Act

On Friday morning, HHS released the updated medical loss ratio (MLR) requirements, and DOL released a technical release regarding the payment of rebates under the MLR rules.  The HHS regulations will be in the December 7th federal register, but a preview is available here: http://www.ofr.gov/inspection.aspx#special The DOL technical release for how to handle rebates under ERISA is at  http://www.dol.gov/ebsa/newsroom/tr11-04.html

Informal Treasury Comments on ACA

in Affordable Care Act

During a tax conference in Washington DC last week, Treasury made some interesting comments regarding two Affordable Care Act issues. Form W-2 Reporting:  Employers are required to report the fair market value of health coverage to their employees on the Form W-2.  This provision is effective for tax years starting January 1, 2012.  Treasury indicated that using the value of coverage for COBRA is not necessarily the best method, because it may not take into account non-tax dependent coverage.  Treasury is working on guidance, but admitted there are many other priorities ahead of this one. Nondiscrimination Rules:  The ACA extended the Code Section 105(h)… Continue Reading

Affordable Care Act Guidance Update

in Affordable Care Act

Last week I spoke at the ABA Section of Taxation meeting in Florida.  Representatives from IRS and Treasury were in attendance at the meeting and spoke about ACA guidance for the upcoming year.  It appears that the Agencies are focusing more on releasing new guidance, rather than finalizing the existing interim final rule guidance.  Thus, look for guidance on the new wellness plan rules and the nondiscrimination rules for insured and self-insured plans later in 2011.  In addition, among the top issues facing the Agencies for the 2014 timeframe are implementation of the individual tax penalty and employer penalty provisions, including how to… Continue Reading

Insured Nondiscrimination Rule Compliance Delayed

in Affordable Care Act

This evening the IRS released Notice 2011-1, exempting insured plans from the new nondiscrimination rules in the Affordable Care Act (and related penalties for non-compliance) until regulations are issued. Further, the notice provides that the regulations are expected to apply to plan years beginning after issuance. Meaning that for calendar year plans, the earliest the nondiscrimination rules should apply is January 1, 2012. It could even be later than that depending on when the IRS issues the nondiscrimination regulations, which is currently expected in Q2 or Q3 of 2011. (The new nondiscrimination rules do not apply to insured grandfathered plans.)… Continue Reading

NAIC Finalizes MLR Rules

in Affordable Care Act

Today, the NAIC finalized its controversial MLR regulations, and have sent them to HHS.  In turn, HHS will turn the MLR rules into regulations under the Affordable Care Act.  In the process, HHS can certainly revise or tweak the MLR rules, including, for example, to make it easier for mini-med plans to pass the requirements.  A few weeks ago we posted a news release by HHS stating that they understood the challenges that mini-med plans face and they intended to revise the MLR rules as appropriate for mini-meds.  The link below discusses the passage of the final rules. http://www.naic.org/Releases/2010_docs/naic_adopts_final_mlr_regs.htm