Categorized as: Blog

IRS Reduces Affordability Percentages for 2018

In Revenue Procedure 2017-36, the IRS announced that for plan years beginning in 2018, employer-sponsored health plan coverage will be considered affordable if the employee’s required contribution for self-only coverage does not exceed 9.56% of the employee’s household income for the year (down from 9.69% for 2017). This percentage is considered for both the ACA’s employer shared responsibility or “pay or play” rules and premium tax credit eligibility. For purposes of an individual mandate exemption, the cost of coverage must not exceed 8.05% of an employee’s household income for the year (down from 8.16% for 2017) (adjusted under separate guidance)….

2017 PCORI Fees

Applies to: Self-Insured Health Plans, including HRAs & FSAs In Notice 2016-64, the IRS provided that the PCORI fee (Patient-Centered Outcomes Research Institute fee) also called the CER fee (Comparative Effectiveness Research Fee) for plan years ending on or after October 1, 2016, and before October 1, 2017, is $2.26 per individual covered under an applicable health plan. The PCORI fees generally apply to insurance policies providing accident and health coverage and self-insured group health plans. The final regulations contain some exceptions to this general rule and also clarify how the PCORI fees apply to certain types of health coverage…

IRS Announces HSA/HDHP Limits for 2018

OVERVIEW On May 5, 2017, the Internal Revenue Service (IRS) released Revenue Procedure 2017-37 to announce the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2018. These limits include: The maximum HSA contribution limit; The minimum deductible amount for HDHPs; and The maximum out-of-pocket expense limit for HDHPs. These limits vary based on whether an individual has self-only or family coverage under an HDHP. The IRS limits for HSA contributions and HDHP cost-sharing will all increase for 2018. The HSA contribution limits will increase effective Jan. 1, 2018, while the HDHP limits will increase…

House Republicans Pass Amended AHCA

OVERVIEW On May 4, 2017, members of the U.S. House of Representatives voted 217-213 to pass the American Health Care Act (AHCA), after it had been amended several times. The AHCA is the proposed legislation to repeal and replace the Affordable Care Act (ACA). The AHCA needed 216 votes to pass in the House. Ultimately, it passed on a party-line vote, with 217 Republicans and no Democrats voting in favor of the legislation. The AHCA will only need a simple majority vote in the Senate to pass. If it passes both the House and the Senate, the AHCA would then…

Market Stabilization Final Rule Issued

OVERVIEW On April 14, 2017, the Department of Health and Human Services (HHS) issued a market stabilization final rule under the Affordable Care Act (ACA). The final rule includes new reforms intended to help lower premiums, stabilize the individual and small group health insurance markets and increase choices for the 2018 plan year. Specifically, the rule includes a variety of policy and operational changes to existing standards to stabilize the Exchanges, including changes to the annual open enrollment period and special enrollment periods. ACTION STEPS The rule does not directly impact plans in the large group market. Instead, it aims…

1st Quarterly Newsletter of 2017

Below please find our Compliance Observer Newsletter for the first quarter of 2017. This newsletter contains information on many employee benefits compliance issues. The following articles, information, and important reminders are contained in this Newsletter: ACA Replacement Bill Withdrawn IRS to Continue Processing Tax Returns without Health Coverage Information Beware! 2017 Tax Scams March 31, 2017 – Deadline to Electronically File Returns with IRS Group Term Life Insurance Imputed Income & the Straddle Rule Reminder! New Summary of Benefits & Coverage (SBC) Telemedicine – Impact on HSA Eligibility Compliance Observer Newsletter- Quarter 1 2017