Compliance Alert: Final Regulations Issued on New Employer Reporting Requirements in 2016

Health Care Reform stethescope imageHealth care reform created two new reporting requirements that address reporting when an individual is enrolled in minimum essential coverage and what type of medical benefits a large employer offers. The requirements are found in Internal Revenue Code (“IRC”) Sections 6055 and 6056, respectively, and were delayed with the delay of the employer penalty.

In short, there are two important reporting requirements due in early 2016:

  • A report to the IRS and to a primary insured reporting which individuals are enrolled in minimum essential coverage for individual mandate purposes, handled by the carrier for an insured plan and by the employer for a self-funded plan;
  • An information return to the IRS and to all full-time employees that reports the terms and conditions of the employer-sponsored health plan coverage, handled by large employers for employer penalty purposes.

On September 9, 2013, the Department of Treasury issued proposed regulations.

On March 5, 2014, the Department of Treasury issued final regulations, which make non-substantive changes that increase consistency and streamline the reporting requirements. The final regulations and fact sheet may be found at:
http://www.gpo.gov/fdsys/pkg/FR-2014-03-10/pdf/2014-05051.pdf
http://www.gpo.gov/fdsys/pkg/FR-2014-03-10/pdf/2014-05050.pdf
http://www.treasury.gov/press-center/press-releases/Pages/jl2310.aspx

For a summary of the regulations or if you have any questions, contact your USI service team.

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