23 Jul

Posted at 17:07h in Employee Benefits White Papers by . .

On July 21, 2020, the IRS issued Revenue Procedure 2020-36 to index the contribution percentages in 2021 for determining affordability of an employer’s plan under the Affordable Care Act (ACA).

For plan years beginning in 2021, employer-sponsored coverage will be considered affordable if the employee’s required contribution for self-only coverage does not exceed:
  • 9.83% of the employee’s household income for the year, for purposes of both the pay or play rules and premium tax credit eligibility; and
  • 8.27% of the employee’s household income for the year, for purposes of an individual mandate exemption (adjusted under separate guidance). Although this penalty was reduced to zero in 2019, some individuals may need to claim an exemption for other purposes.

14 Jul

Posted at 22:15h in Employee Benefits White Papers by . .

On July 13, 2020, the Internal Revenue Service (IRS) released draft 2020 forms for reporting under Internal Revenue Code (Code) Section 6056.

2020 draft Forms 1094-C and 1095-C are draft versions of forms that will be used by applicable large employers (ALEs) to report under Section 6056, as well as for combined Section 6055 and 6056 reporting by ALEs who sponsor self-insured plans. Draft instructions for Forms 1094-C and 1095-C have not yet been released.

06 Jul

Posted at 16:29h in Employee Benefits White Papers by . .

Businesses that have access to protected health information (PHI) on behalf of a covered entity (for example, an employer’s group health plan) typically qualify as “business associates” under the HIPAA Privacy, Security and Breach Notification Rules (HIPAA Rules). If a covered entity uses a business associate, it must have a written business associate agreement with […]

25 Jun

Posted at 17:22h in Employee Benefits White Papers by . .

On Tuesday, June 23, 2020, District Judge Carl Nichols ruled in favor of the Trump administration’s final rule requiring hospitals to disclose their negotiated prices. The rule was released on Nov. 15, 2019, and set to take effect Jan. 1, 2021. However, in December 2019, the American Hospital Association (AHA) filed a lawsuit attempting to […]

12 Jun

Posted at 21:08h in Employee Benefits White Papers by . .

On June 10, 2020, the Internal Revenue Service (IRS) issued proposed regulations on how it may treat amounts paid for direct primary care arrangements, health care sharing ministries, and certain other medical care arrangements under Internal Revenue Code Section 213. Specifically, the proposed regulations provide that: Payments made for a direct primary care arrangement could be […]