Affordable Care Act Regulatory Roundup

Tuesday, March 18, 2014

Individuals Permitted to Retain Non-ACA-Compliant Health Insurance Policies into 2017

On March 5, 2014, the Obama administration announced that, pending state approval, individuals who now have health insurance policies that do not meet the Patient Protection and Affordable Care Act’s new minimum benefits requirements may nevertheless keep these policies into 2017. While the federal government has signed off on these extensions, it is up to each individual state to decide whether to permit them. Health and Human Services Secretary Kathleen Sebelius said the extension for policies that are not ACA-compliant as well as the other announced adjustments are intended to “implement the health-care law in a commonsense way by continuing to smooth the transition for consumers and stakeholders and fixing problems wherever the law provides flexibility.”

Treasury Department Issues Final Rules Implementing ACA Employer Reporting Requirements

On March 5, 2014, the Treasury Department released final rules implementing the ACA’s information reporting requirements for insurers and employers with 50 or more employees. The reporting is needed to demonstrate that employers and insurers are complying with the ACA’s minimum essential coverage requirements. Failure to meet the minimum standard for insurance offerings could result in an employer shared responsibility payment that would be collected by the IRS. Of importance to local governments, in particular, the new rules provide employers that self-insure with a single, consolidated form to report to both the IRS and employees under tax code sections 6055 and 6056, to help simplify the process and avoid duplicative reporting. Read more here

IRS Advisory Committee Invites Survey Participants on ACA Issues through March 26

The Advisory Committee to the IRS on Tax Exempt and Government Entities issued a new survey to assist the IRS Federal, State, and Local Government office in developing outreach/educational tools and materials for tax exempt and government entities. This is not an IRS survey, and no personal information will go to the IRS. It is being distributed to state and local governments across the country to in an effort to offer the IRS broader summary insights for their ACA planning. The survey is meant to be answered by someone that manages or oversees employer tax reporting for your entity, and it should take about 20 minutes to complete.