Trumping the Affordable Care Act? Not So Fast – Impact of Executive Order on Employers Unclear

On January 20, 2017, President Trump signed an Executive Order (“Minimizing the Economic Burden of the Patient Protection and Affordable Care Act Pending Repeal,” hereinafter referred to as the “Order”) relating to the future of the Affordable Care Act (“ACA”).  The stated goal is to direct the agencies (IRS, HHS, and DOL) to waive or defer provisions of the ACA that would “impose a fiscal burden on any State or a cost, fee, tax, penalty, or regulatory burden on individuals, families, healthcare providers, health insurers, patients, recipients of healthcare services, purchasers of health insurance, or makers of medical devices, products or medications.”  Notoriously absent from this list is any mention of employers or plans.  Read More ›

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New Draft Instructions Released for ACA Information Reporting

As explained in my previous blog, Code Sections 6055 and 6056, added by the Affordable Care Act (“ACA”), require all employers (even small employers) sponsoring self-funded health plans and large employers to file information returns with the IRS and furnish statements to employees concerning the health coverage offered or provided to these employees and their dependents.  Mandatory reporting begins in 2016 with respect to 2015 coverage. Reporting 2014 coverage in 2015 was voluntary.

On August 6, 2015, the IRS released the 2015 draft instructions for mandatory reporting. The 2015 draft instructions contain several changes from the 2014 instructions for voluntary reporting. Read More ›

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ACA Information Reporting Penalties Have Been Increased

Code Sections 6055 and 6056 require large employers and all employers (even small employers) sponsoring self-funded health plans to file information returns with the IRS and furnish statements to applicable employees concerning the health coverage offered or provided to these employees and their dependents.  This information reporting begins in 2016 with respect to 2015 coverage.  It will be similar to Form W-2 reporting.

The Trade Preferences Extension Act of 2015 (the “TPEA”), enacted on June 29, 2015, increased the penalties for failing to comply with these new reporting requirements.  Before the TPEA, penalties were $100 per failure with an annual maximum of $1.5 million.  Read More ›

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