Is it possible that the Cadillac Tax will be a major health spending cost ‘deflator’?
The IRS released final regulations governing information reporting under Sections 6055 and 6056 for health plan coverage. This information will be used to determine if an applicable large employer owes Employer Mandate penalties if a full-time employee receives subsidized coverage through an exchange.
These reporting requirements apply for calendar years after December 31, 2014 and the information will need to be provided to the IRS and individuals early in 2016. However, voluntary compliance is highly encouraged to essentially ‘work out the bugs’ and ensure things are working smoothly in 2015.
Large employers should be working to ensure that they have access to the information that will be needed to report, including but not limited to:
- the name, address and EIN or the applicable large employer
- a contact person with a telephone number
- a certification as to whether full-time employees (and their dependents) were offered the opportunity to enroll in minimum essential coverage under an employer sponsored health plan, by calendar month
- the number of full-time employees for each calendar month during the calendar year
- for each full-time employee, the employee’s share
- each full-time employee’s share of the lowest cost monthly premium for self-only coverage providing minimum value offered to that full-time employee under an eligible employer-sponsored plan, by calendar month.
Employees must also be furnished with statements. There are also simplified reporting methods available. Employers should begin actively working with advisors now to prepare for these requirements as there are a number of useful tools for tracking and reporting. Bestefits can help you to model the impact and guide you through the requirements. Even though Health Care Reform is complex, we make it easy!
Please be sure to read this article for more complete information and references.
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