Kapnick  Health Care Reform Update  
A Week in Review

 

 

People helping people...it's what we do best                          Vol. 2 |  Issue 1

December 2011

 

 


Kapnick
Introduces it's
NEW "Health
Care Impact Analysis Tool."


More Health Care Reform (HCR) Links

Please contact
your designated
Client Executive for more information regarding 
these topics.

 

Week of 12/05/2011 - 12/09/2011: 
click here to view all HCR materials 

Health Care Reform –Summary of Benefits and Coverage (SBC) Effective Date Delayed

The Department of Labor (DOL), Health and Human Services (HHS), and Internal Revenue Service (IRS) have jointly issued a reprieve on compliance with the Summary of Benefits and Coverage (SBC) requirements issued under Health Care Reform PHS Act section 2715. 

 

Initially, all plans were to comply with the mandatory SBC format on March 23, 2012.  This compliance date has been postponed however, due to the numerous questions and comments received about the format.  It is anticipated that the current template may change due to the feedback the agencies received.  Once final regulations are issued a set period of time will be allowed to adopt the final format.  Therefore, we recommend plans delay adopting the current template and wait to move forward until the final regulations are issued. 

 

The current proposed template can be found on the DOL website website (http://www.dol.gov/ebsa/healthreform/).  More information about the SBC and the delayed effective date can be found on the DOL website at http://www.dol.gov/ebsa/faqs/faq-aca7.html

 

Health Care Reform – W-2 Reporting Requirements

The Patient Protection and Affordable Care Act (PPACA) requires companies offering a group sponsored medical plan to report the aggregate cost of the health (medical) coverage on their employee’s W-2s.   The initial effective date for this requirement was the 2011 tax year; but that was delayed until the 2012 tax year (W-2s issued in January, 2013).  Most employers that provide a group sponsored medical plan and file 250 or more W-2s will need to comply with the reporting requirement.  The IRS delayed the reporting requirement for small employers (those who file fewer than 250

Forms W-2s) by making it optional for these employers until further guidance is issued.  Penalties for non-compliance are significant; $200 per W-2, capped at $3 million per employer. 

 

Click Here to Learn What Needs to be Included in Reporting

  

Click Here to Learn How to Calculate the Reportable Cost

 

 

More information on the W-2 reporting requirement including what companies and coverages are excepted from the rules can be found on the IRS website,

 

www.irs.gov/pub/irs-drop/n-11-28.pdf

 

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As part of our service to you, we regularly compile short reports on new and interesting developments and the issues the developments raise. Please recognize that these reports do not constitute legal advice and that we do not attempt to cover all such developments. Rules of certain state supreme courts may consider this advertising and require us to advise you of such designation. Your comments are always welcome. Kapnick Insurance Group.

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